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ForexLive North American Wrap: The Stalemate Continues In Greece

|Includes:CurrencyShares Australian Dollar Trust ETF (FXA), FXC, FXY

Typical recent US session where risk trades are hit in the early going and then mount a modest comeback before slumping into the stock market close. EUR/USD broke below stops at 1.2855 in early trading and touched 1.2825 at the lows. A modest rebound above intraday buy stops at 1.2850 ran to 1.2857 but slumped to 1.2834 later.

USD/JPY (NYSEARCA:FXY) hit a 3-day low of 79.68 from 80.19 midway through Europe as US T-note yields hit a 6-month low. Traders suspected the move might be disorderly enough to justify Japanese MOF intervention and got out of the way, leading to a rebound to 79.86.

Cable bucked the trend, partly due to EUR/GBP selling, and jumped to 1.6120 from 1.6060. ECB fixing demand was a likely driver.

USD/CAD (NYSEARCA:FXC) was resilient at the top of the range, touching 1.0054 but corporate offers capped the move. AUD/USD (NYSEARCA:FXA) will close the day around 0.9967 - well-below parity.

The better action was outside of FX as oil and periphery bonds were trounced. It's only a matter of time before the volatility returns to currencies.

http://www.forexlive.com/blog/2012/05/14/forexlive-north-american-wrap-the-stalemate-continues-in-greece/

Stocks: FXA, FXY, FXC