Currencies action last Friday

USD, JPY, EUR

The recent reports of weak economic data provided another rumor of an imminent China reserve ratio (RRR) cut which helped to halt the recent risk aversion flows.

Sovereign names were cited to be USD sellers as the session began Friday. The USD was softer against the major pairs as a result and hitting multi-week lows against the EUR and CHF pairs.

But, note that the typical window for the Peoples Bank of China action passed and the European equity markets drifted off earlier highs and into negative territory.

The USD was off its worst levels as the NY morning session opened. The EUR-USD hovered around the 1.3260 level.

USD-JPY found support on Japanese importer demand.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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