Today Statement: Markets in Range as Investors Calmed Down

Markets are generally in tight range today with dollar a bit softer. The pull back in dollar is so far mild while the recovery in crude oil and gold lack follow through buying. It looks as if risk aversion flows in the markets pull back from last week's climax and investors have calmed down a bit. Some more consolidations would possibly be seen in near term. But, sterling, which faces some pressure on political issues today, would probably gyrate lower even though other currencies stay in range.

The pound is so far the weakest currency this month and focus is turning to GBP/CAD today, which leads the top movers chart. Canadian dollar was relatively resilient last week, as supported by solid job report and has bottomed earlier than others against dollar. GBP/CAD's break of 1.6670 support today confirms that rebound from 1.6397 has completed at 1.7282 already. Further downside is in favor towards lower end of recent range at 1.6233/6397 next and break will confirm long term down trend resumption. In short, we'd expect sterling to under perform Canadian dollar in most time frames.

Based on ActionForex.com Technical Outlook