The USD is mixed to open New York after a relatively quiet start in Asia last night; no real economic news was released leaving the Greenback to trade on mostly technical factors. Now that the panic-buying of USD has largely subsided from late last-week traders are holding the majors in a consolidative pattern to start the week.

Normally seen on the bid for EURO during the sharp sell-off recently, major Swiss names seen on the offer overnight around the 1.4650 area traders say; high prints in the rate at 1.4769 in Asian trade. US investment houses seen on the bid this time most likely covering recent shorts; traders note cross-trading for non-USD pairs pressuring EURO as well.

Normally following EURO lower but firming today, Cable has held last week’s low so far today with a low print at 1.8624 and the toolbox is flashing an exponential buy this morning. Aggressive traders can buy GBP/USD at the 1.8680 area or better during the day. Tuesday will likely be a big day for both EURO and GBP due to the fundamentals being released making Monday a set-up day. With the heavy selling pressure in both pairs recently a short-squeeze is overdue; in my view getting a position on today ahead of potentially negative news for the USD with corresponding positive news from overseas makes for a good probability of higher EURO and GBP pricing mid-week.

USD/JPY is lower making lows under the 110.00 handle in Asia overnight; bids seen from US names traders say as well as importers. The rate is currently holding inside range on light volumes suggesting the rate is still seeing a potential top under the 110.50 area. OK to hold shorts through the day. USD/CAD opened lower and dropped to a 1.0542 low print; if holding shorts you would have added to the rate on the break to 1.0560 area.

Currently a bit higher on the day around the 1.0600 handle traders note a lot of technical trade keeping the rate two way to start New York. After taking losses this month, the sucker-rally in the USD appears to be finally faltering putting us in a position to recover during the second half of the month.

Look for the USD to weaken during the week but still place stops on open positions; volatility has increased so be protected from whipsaw.  

Overnight Asia/Europe

•           Quiet start overnight, USD range-bound
•           Volumes lower
•           Technical trade dominates due to lack of news

Today’s Economic Reports
All times EASTERN (-5 GMT)

•           1:00pm USD NAHB Housing Market Index

Very light start to the week, light news from overseas as well.

Looking Ahead
All times EASTERN (-5 GMT)

•           8:30am USD Building Permits
•           8:30am USD PPI m/m
•           8:30am USD Core PPI m/m
•           8:30am USD Housing Starts
•           10:00am USD FOMC Member Fisher Speaks

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com