Monday, 10 Aug 2009

Pacific Currencies Make Waves Following Last Week's Bomb-Shells

Much of the market's attention was diverted away from the volatility of last week experienced by the majors. In the early morning trading hours today, forex participants began seeing data releases from Australia and Japan that created some sharp volatile movements in those currencies' primary pairs and crosses. Now that the volatility in these unique currencies has died down somewhat, the spot-light is being shifted back to the world's primary currencies in anticipation of tomorrow's European and American market data.

While tomorrow's releases aren't expected to create much volatility, they will nevertheless shift focus back to the Western countries of Europe and the United States. The Canadian Dollar (CAD) may rear its head tomorrow as well with an important release of Canadian Housing Starts expected at 12:15 GMT. Any signs of positive growth in Canada's housing sector will no doubt shine through as bullish pressure for the Loonie. Trader's should double-check the Stop and Limit orders on their CAD positions before this figure is released as moderate volatility is expected.