Session Re-cap; markets await for action to come on Wednesday

FXstreet.com (Guatemala) - A very slow and sluggish start to the week due to the US holiday while markets await Wednesday as the key trigger point. Consolidation has been the theme while CFTC data shows dollar longs at 5.5-month highs.

Soft equity markets are keeping a lid on USD/JPY. The pair dropped overnight to 103.90 and that was met with local corporate demand. The recovery is stalling against 104.30 as US Yields and Equity nervousness prevail. The pair is currently recovering into the 104 handle.

GBP/USD is holding up well, holding into 1.64 territory and the cross lower with rumours that the IMF will upgrade the UK Growth forecast more than any other major economy. The market now awaits the MPC minutes and Employment data on Wednesday.

EUR/USD has seen a steady corporate supply of dollars and that has taken EUR/USD higher, consolidating on 1.3560.

AUD/USD is recovering on CTA post slightly better Chinese data taking the pair 0.8780 to 0.8822 on short covering and is currently consolidating on the 0.88 handle.

USD/CAD is holding below the 1.10 barrier still. Eye’s on BoC this week.

Main headlines in the European session:

Producer Price Index (MoM) (Dec) 0.1%

Industrial Orders n.s.a (YoY) (Nov) -0.5%