Another very quiet start to the week but volatility slowly increasing

It’s been another very slow start to the interbank trading week with most of the major pairs hanging around Friday’s closing levels. There are no major economic events in Asia until the Chinese inflation data on Wednesday and of course the market will be hanging on the Fed minutes later the same day.

Nevertheless, volatility is slowly starting to creep back into the market and I have a feeling that it will be the EUR that ushers in the next big market movement (I’m presuming that it will fall heavily across the board).

The GBP continues to make fresh highs and the NZD/USD is consolidating just below post float highs. AUD/USD is range bound as is USD/JPY.