Thin Labor holiday trading would simply mean a spill over of the closing sentiments and continuing trading activity from last Friday's closing. This would be a lowering price for the European majors as seen with today's price movements. The opening prices across the board already indicated an a gap where some players would take advantage of the US market holiday with just a few traders left over for position adjustment as the new month opens its trading towards the second week of trading activities. Re-emerging European contagion on the debt crisis has somehow been weighing in on the European currencies as it moves further lower beyond their active support levels.
With the Euro currently at the 1.4080 low attempting to cover an extension through the 1.3989-1.4010 initial objective at the start of the trading week. And the follow through price reaction by the GBPUSD at the 1.6089 working price from an initial low of 1.6060; whereas the extension of a low towards the 1.5875-1.5990 trading range that would be attempted for the week.
However, volumes and momentum would dictate the price movement and volatility after the North American sessions open after the holiday. However, the recent indication of a rally with the US Dollar Index showing its colors by bullish traders taking the risk of earlier longs from the start of the week registers a number above the 75.05-10 basis points. With a slight advantage on the opening prices and above its 75.10 levels of resistance. European institutions may figure a way to push USD higher even before the North American opens catching their counterparts flat-footed before then. But this is purely speculative as it could be a shakeout for bearish players still calling for that illusive double dip recession to make it official.
However, volumes and momentum would dictate the price movement and volatility after the North American sessions open after the holiday. However, the recent indication of a rally with the US Dollar Index showing its colors by bullish traders taking the risk of earlier longs from the start of the week registers a number above the 75.05-10 basis points. With a slight advantage on the opening prices and above its 75.10 levels of resistance. European institutions may figure a way to push USD higher even before the North American opens catching their counterparts flat-footed before then. But this is purely speculative as it could be a shakeout for bearish players still calling for that illusive double dip recession to make it official.
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