EUR/USD
The pair traded steadily upwards through the session, with initial strength garnered from ECB's Weidmann comments, who downplayed the ability of the central bank to target weaker EUR. The light news flow and volumes meant the price action was somewhat muted for the session, as touted bargain hunting following last week's volatile price action, which marginally out-performed its peers for most of the day. The upward grind was capped by various technical levels, with the focus on the 100DMA line at 1.3740, which once broken will likely lead to further squaring of short-positions. Looking ahead, there is a lack of tier 1 data tomorrow, although a myriad of ECB speakers, namely Liikanen and Linde, look to offer the chance for similar price action observed in the previous week.
GBP/USD
The GBP/USD spent the session in similar territory to EUR/USD, amid a lack of news flow and tier 1 data to direct prices. The pair steadily ticked upwards after the volatility seen last week and bargain hunting, helped move the pair away from its session lows as the weaker USD benefitted GBP. Looking ahead the UK CPI tomorrow offers the most significant risk event for the pair, although attention will firmly be on the BoE minutes later in the week.
USD/JPY
The cautious sentiment which dominated the Asian session was also evidenced in Europe this morning in turn ensuring that USD/JPY remained under pressure, falling to its lowest level since February after stops were triggered on the break of the 200DMA line at 101.23. The flight to quality pressured the USD, benefitting the other majors, and kept the pair testing the 101.00 handle through the session. The afternoon Ukrainian news flow kept sentiment in favour of the JPY. Looking ahead, the pair have a host of tier 2 Japanese data overnight, while a host of Fed speaker later tomorrow offers the market risk event to digest.