Article Highlights

  • IMF raises Germany’s growth forecasts
  • RBA Governor Stevens to speak in Sydney
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The currency bulls and bears were firmly in Chopsville during the U.S. forex trading session as they struggled to find direction amidst the lack of fresh market-moving reports.

The biggest headline of the session was the IMF upgrading Germany’s growth forecasts. It raised its 2014 growth estimates from 1.7% to 1.9% and its 2015 valuations from 1.6% to 1.7% on the back of Germany’s “prudent economic policies” and commitment to European integration.

The euro barely reacted though, as EUR/USD stayed on a tight range just above the 1.3500 handle and EUR/GBP was in the .7920 area. Even EUR/JPY ended the session with an 11-pip gain at 137.11.

Comdoll currencies like the Aussie, Loonie, and Kiwi as well as other closely-watched currencies like the pound and the franc didn’t get any action against the Greenback either. Only USD/JPY showed some volatility when it slowly climbed to its intraday high at 101.39 by the end of the trading session.

Will we see more volatility today? The Asian session traders don’t have much going on with only China’s leading index data at 2:00 am GMT on tap. The report doesn’t usually cause lasting impact on the Asian currencies but watch the release closely in case investors fixate on it amidst the overall lack of market-moving reports. Also keep your eyes peeled for RBA Governor Stevens’ speech at 3:00 am GMT in case he says dovish remarks that might affect the Aussie’s price action.

See also:

London Session Recap

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