Opening Analysis

The economics reports on CPI (YoY) basis were in line with expectations and market sentiments on the opening week still remains to be quite volatile particular for the USDCHF and the GBPUSD making their mark on both directions. The weakness of the USD as its corrective move from a stronger tone last week is an expected one.

The only remaining report that may still trigger volatility would be the speech that the US Secretary Geithner would be making this week. However, the real market sentiments prevail as the reports of the US deficits weighs heavier specially with a 13.3T national debt and China's recent reduction of 2.7% of US treasuries about $24B. making China now as the 2nd biggest economy for the 2nd qtr. of the year.
The currency majors are spread all over the market place, as investors and traders has been more reluctant to buy USD inspite of the USD strength last week. Some analyst mentioning flight to quality, but the real issue that most major players in the forex market including the central banks have been shifting funds unloading Euros held from the previous European crisis.

With that said, the GBPUSD and Euro have made some recovery from its downtrend as it is at the 1.5655 from a 100pt. low and 1.2827 respectively as of this writing.
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