EUR/USD/GBP crosses

USD remains under pressure in early Asian trade

EUR/USD traded up to 1.2270 in very early Asian trade, 50 pips above Friday’s close, after positive headlines regarding German coalition talks and more uncertainty regarding the US government funding situation.

The early-year trend of a lower USD looks like it might still have some legs and I am not looking for a reversal just yet. Cable remains on track for a test of 1.45 and EUR/USD is starting to look comfortable above 1.20. USD/JPY still looks like a medium-term range play (107-114) so I am trying not to get overly bearish as we near the lower end.

USD/CHF is still the most likely pair to give the USD bulls some joy as I feel the CHF has more scope for losses on the crosses, especially against the GBP, AUD and NZD. I’m not jumping in just yet but and will certainly sharpen my pencil on any impulsive sell-offs.