The USD is mixed to open New York after a relatively quiet start in Asia last night; no real economic news was released leaving the Greenback to trade on mostly technical factors. Now that the panic-buying of USD has largely subsided from late last-week traders are holding the majors in a consolidative pattern to start the week. Normally seen on the bid for EURO during the sharp sell-off recently, major Swiss names seen on the offer overnight around the 1.4650 area traders say; high prints in the rate at 1.4769 in Asian trade. US investment houses seen on the bid this time most likely covering recent shorts; traders note cross-trading for non-USD pairs pressuring EURO as well. Normally following EURO lower but firming today, Cable has held last week’s low so far today with a low print at 1.8624 and the toolbox is flashing an exponential buy this morning. Aggressive traders can buy GBP/USD at the 1.8680 area or better during the day. Tuesday will likely be a big day for both EURO and GBP due to the fundamentals being released making Monday a set-up day. With the heavy selling pressure in both pairs recently a short-squeeze is overdue; in my view getting a position on today ahead of potentially negative news for the USD with corresponding positive news from overseas makes for a good probability of higher EURO and GBP pricing mid-week. USD/JPY is lower making lows under the 110.00 handle in Asia overnight; bids seen from US names traders say as well as importers. The rate is currently holding inside range on light volumes suggesting the rate is still seeing a potential top under the 110.50 area. OK to hold shorts through the day. USD/CAD opened lower and dropped to a 1.0542 low print; if holding shorts you would have added to the rate on the break to 1.0560 area. Currently a bit higher on the day around the 1.0600 handle traders note a lot of technical trade keeping the rate two way to start New York. After taking losses this month, the sucker-rally in the USD appears to be finally faltering putting us in a position to recover during the second half of the month. Look for the USD to weaken during the week but still place stops on open positions; volatility has increased so be protected from whipsaw.

Forex Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky.