LONDON SUMMARY

Easter Monday severely limited the number of market participants today as Europe and Australia are both on holiday. Trading conditions were typical for such a session, with very light volume and minimal volatility. In addition, there were no economic data releases. Most major currency pairs were virtually unmoved.

As was the case on Friday, the overlap in Asia and London Sessions allowed for the majority of the movement, with Asia fully staffed today. EUR/USD saw the most activity within a decent (estimated) 25-30 pip range, moving the EUR/JPY cross with it. The notable level of 1.3350 held strong, a zone that New York traders will have in their sights. The likely reason that buyers came in was technical support. On the London open on Thursday, 1.3354 was the low. From there, EUR/USD rallied to a high around 1.3440. The only other currencies that saw any action were the New Zealand and Australian Dollars (NZD and AUD). NZD/USD rose from a low just above 0.7200 to a high around 0.7240. AUD/USD advanced about 25 pips, from 0.8150 to 0.8175. These currencies broadly represent the carry trade, continuing the theme of investors maintaining a positive bias on the idea.

The week ahead will be active, highlighted by Bank of Japan (BoJ) and ECB rate decisions along with the Fed Minutes from the last meeting.