New-York session update – 6 Jan

17:00 GMT

After the Euro plunged today against most majors during the London trading session, the last few trading hours have brought the fall to a temporary halt.
EURUSD is back above 1.34 after trading as low as 1.3307 ( mind you that only Monday morning we where trading at 1.3900). The reverse move came as a result of reports today showing U.S service industries and pending home resale declined.
However, renewed selling of Euro might continue after the breather aiming 1.33 and lower in the near future.

The  market sentiment has obviously shifted against the Euro as even the rising star of the crisis – the EURGBP , a currency pair which maintained a constant and strong upward move since October 2008 is finally correcting some of its substantial gains.

Since Yesterday, EURGBP has dropped from 0.9600 to 0.9100. For  a pair that averaged 20 to 50 pip move a day for the last decade , 500 pips move in two days is an unimaginable volume.

Z.Georgi

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