The bank holiday in Japan set the tone for the session, a quiet beginning to what could end up being a very busy week that will be highlighted by some top tier data. Although the three day Japanese holiday should keep the action in Asia toned down, the US FOMC meeting, Unemployment, and Home Sales should keep the week very interesting, with the G-20 Meetings that begin on Thursday being the grand finale. Today's day began with the British Pound opening about 50 pips lower than Friday's settle near 1.6270. With the Bank of England under the microscope as of late it has been easier to find fault with current policies and shortfalls of those policies. The scrutiny has been harsh on the Pound to say the least. Traders took the GBP/USD to under 1.6210 and later to a high of 1.6262, but ultimately the pair was flat for the day after the ride. EUR/GBP opened to a five month high near .9065 on the cable weakness, but the pair later settled down near 0.9045, only slightly higher than Friday's close.
Otherwise in Asia, the US Dollar made some negligible gains against the Euro, crawling to about a 25 pip gain for the day near 1.4680. Against the Yen the Dollar also continued its path higher, breaking through 91.75 in late session trading. A horde of Yen sellers helped push the crosses higher as London prepared for its Monday morning. Further south in the Pacific, the high flying and yielding Aussie and Kiwi Dollar also were persecuted by the mild wave of Dollar strength. The low in AUD/USD was near 0.8645 as of this report.
With the Dollar's dramatic slide over the past few months, many traders are setting their sights on this Thursday's FOMC meeting to find possible clues that may offer the Dollar a reprieve. While no rate movement is expected, Chairman Bernanke could drop hints to the Federal Reserves current course of action.