Article Highlights

  • New Zealand election results boost NZD
  • Economy Minister Amari: Japan to hike taxes again?
  • ECB Governor Draghi set to testify today
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Looks like those weekend gaps got filled pretty quickly! Even though data was light in today’s Asian trading session, forex pairs did make a few moves here and there. USD/JPY started off at 109.09, dipped to a low of 108.67, before recovering to 108.90. EUR/USD had a strong run from its 1.2831 open price to the 1.2850 minor psychological resistance.

NZD/USD is still supported after gapping higher over the weekend, as the latest election results revealed that Prime Minister Key could extend for another term. This lessens the odds of seeing political changes in New Zealand, allowing NZD/USD to hover around the .8130 levels for now.

Over in Japan, Economy Minister Amari was quoted in an interview saying that Japan might be ready for another sales tax hike. An article on the Financial Times indicated that Amari said that a second increase in taxes is necessary, although he also mentioned that it is important for the government’s goals to be aligned with that of the BOJ.

The euro could take center stage in the next few hours, as ECB President Draghi is set to give a testimony in parliament around 2:00 pm GMT. Any dovish remarks could drive the euro lower against most of its forex counterparts, especially since the latest targeted LTRO from the ECB was welcomed with weak demand.

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!