When heavier than expected news reports prevails before and after trading sessions expect increase volatility & price action. This occurred when Moody's rating agency have downgraded the UK one notch lower after Friday's trading hours that led the opening price in Asia to hit @1.5085 low and stayed within these price levels.
However, the opening price gaps occurred across the board, especially with the Japanese Yen reacted on the stance of the ADB Kuroda and that Prime Minister Shinzo Abe will appoint someone who shares his dovish position with regards to monetary stimulus is expected. While the Asian market opened @94.20 from the previous closing price of 93.40 then drove the prices to as low as 90.85 and currently working @91.93.
Other than the recent Italian elections, all eyes would focus on Fed Chairman Ben Bernanke as he would be making his congressional testimony for two days which would again make the market vulnerable to sensitive comments posing price swings in both directions.
But as we have mentioned in our previous market analysis dated the 22 of February; a major correction was indeed expected in the first two days of this trading week. Whereas, the corrective strength of the JPY
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