Currencies traded calmly within tight ranges in the European session as the year-end volume drops ahead of the Christmas and New Year weekends. The lack of fundamentals also contributed to the calm session.
The euro traded among the lowest at 1.4279 and the highest at 1.4358 versus the dollar; the range was tight most of the time among 1.4305 support and 1.4355 resistance. The tight trading range for the euro lingers around its lowest levels since August and with the drop in trading volumes, the tight ranged trading might prevail.
Sterling also traded within a very tight range versus the dollar among 1.6087 and 1.6163, where generally trading was below 1.6155 the separating barrier over short term basis for the pair's positivity or bearish tendencies.
The Japanese yen also traded tightly versus the dollar among the highest for the pair at 90.66 and the lowest at 90.22. The tight trading range seen in the market should be noted due to the year-end drop in volumes yet it adds volatility to the market as news or speculation might be capable of strongly moving the market amid the low volume and later this week we have important UK and US data and caution still needs to be addressed.