Forex volatility Picks-up

With the recent UK PMI disappointing nine-month low prompted the GBPUSD to continue to move lower currently at the 1.5370 from a low at the 1.5330 which led other traders and investors to shift currency pairs to the EURUSD and back to the AUDUSD as an arbitrary hedge strategy against the weaker USD whereas the USD index is now at the 82.77 bp levels and a probable continuation lower would be made. With the EURO leading the majors as an alternate currency flight to quality whenever the USD heads lower with some alternative trades with the appreciating Gold prices now back nearing it s all time high USD 1265.05.

As the EURGBP cross rates has reacted higher whenever a contradictory movement is made between the two major pairs as it made it recent hourly high at 0.8315 at the start of the 1st trading day of the new month with accelerated volumes. Strength of the Euro vs the USD and the Pound will continue to the 0.8350-60 level of resistance on a day to day basis. However, continued strength will prevail whenever the Euro accelerates and the continuing USDX still heads lower.

Meanwhile, the USDCAD corrective move has been limited to the 1.0553-80 levels whjile maintaining its higher movement in a slower pace. do expect that this will also continue while making these slight corrective moves before it resumes its trend higher.

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