Despite a mixed opening and solid two-way trade, none of the majors were able to extend gains against the USD today in super-light trading. Cable scored a modest new high from overnight action, as did Yen, but all the major pairs continue inside previous support or resistance with modest interest on both sides remaining after the first day of trading for the week.

GBP held gains made in New York reversing off the lows seen in late Europe but still not attracting large size. Most of the action was considered drifting trade with little impetus behind it suggesting the GBP was drifting higher from lack of selling rather than outright buying. Trader’s note that “absolutely nothing” was going on after the London fix.

EURO remained stuck inside a very tight 30 point range after the fix which saw some EURO selling but not enough to break the rate back convincingly under the 1.5700 handle. Traders complained of very light volume again as was the case in all the pairs. USD/JPY fell to a new daily low at the 107.33 figure but saw some solid bids emerge to lift the rate off the lows; high prints overnight at a new monthly high of 108.08 remained unchallenged in NY trade and traders expect another test to draw out the offers again tonight. For the most part the USD was the victim/beneficiary of non-USD cross spreading which again saw demand for Yen at the highs.

Exporters on the offer will likely be seen tonight. About the only USD pair with any upside follow-through from last week today was USD/CAD. Traders note that high prints at 1.0247 included light stops and possible official buying suggesting the rate will try for the 1.0250/80 area before reversing. In my view, the Loonie is at the top of the range and a drop is coming so aggressive traders can sell USD/CAD anytime over the 1.0250 area near-term. I’ll make it an official set-up in the next 24 hours but I like the sell side over the 1.0250 area. In my view, the USD has had a dismal day of non-event trading.

Today’s highs/lows cannot be relied on to offer significant data for the coming few days as the volume were so low and the interest non-existent. Traders appear to be waiting for more news later in the week. Expect a quiet overnight session also.

Today’s US Dollar Trading

•           Unusually quiet, little volume
•           Ranges hold for the most part
•           No real push either way with any conviction

Overnight Preview

•           Look for more quiet action
•           Two-way and technical action to continue

Looking Ahead to Tuesday

All times EASTERN (-5 GMT)

•           9:00am USD S&P/CS HPI Composite-20 y/y
•           10:00am USD Consumer Confidence Index

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