Feb 20, 2009
By: Danelle
As the news of the US Core Consumer Price Index hit, most of the prices in the majors had some major whipsaw movements.
EUR/USD opened at 1.2657. After trading in a range of over 300 pips, the pair finally closed at 1.2835, up 178 pips for the day.
GBP/USD behaved similarly. Opening at 1.4259, it closed at 1.4424, up 165 pips. This is starting to show a clear upward trend and will likely be a good candidate for a long position.
USD/JPY closed at 93.03, down 96 pips from its 93.99 open. This potentially signifies a reversal of the recent upward trend over the past week or so, and bares further observation before committing to any trades.
USD/CAD continued its new downward movement. Opening at 1.2561, it reached a high of 1.2649 and a low of 1.2420 before finally closing at 1.2488, down 73 pips from the open. The large trading range indicates the bulls tried to continue the upward rally, but were unsuccessful as the bears maintained control. This pair is likely to continue its downward movement short term.
AUD/USD continued its upward movement, but just barely. With a trading range from 0.6497 to 0.6352, it closed at 0.6460, up only 16 pips from its open. Don't close out your long postitions yet, as we may still see the upward movement continue to the 0.6525 level. But be cautious as the large range could be an indication of changing investor sentiment.
Finally, USD/CHF had a huge drop in price today. After an initial push to a high of 1.1884, the pair closed at 1.1525, down 218 pips for the day. With the news release, this pair could continue its downward slide for the next few days.
That's it for currency action for today.
