A predictably quiet Asian session that saw the majors mired in range bound trade as they wait for an official communique from the G20 meetings. Expectations are that this august body will stick to the draft that was prepared and released prior to the event. The crux of this, at least from the currency markets' perspective, will be an affirmation of their commitment to avoid weakening their currencies to gain a trade advantage. Japan has been getting verbal support from some of the member nation representatives for their recent policy initiatives which should translate into higher levels for USD/JPY and yen crosses in the near future.
Todays' price action in dollar/yen would indicate that market seems to concur with this premise as the pair has managed to breach the 98.50 level. The price action of the EUR/USD over the past few days has defined 1.3000/1.3200 as the near term range and unless something dramatic comes out of G20, this should hold going into the weekend. Gold and US Crude Oil are showing signs of nascent strength which has to be viewed as corrective in nature until and unless key levels at 1500 and 90 are breached.