US dollar fell versus its major counterparts as former Treasury Secretary Lawrence Summers quitted the race the race to lead the Federal Reserve damping the expectations for an early halt to expansionary monetary policy. Fed Vice Chairman Janet Yellen, another potential candidate for the post, is considered to be more QE-friendly. In addition, the risk appetite improved as US and Russia agreed on framework to securing Syria’s chemical weapons by the middle of 2014.
EUR/USD is consolidating in the $1.3360/80 range after having opened the week with a 50-pips bullish gap. ECB president Mario Draghi is due to speak in Berlin today at 8:00 GMT – we’ll see if the risk-on sentiment persists after his comments. Market will also pay attention to the euro zone inflation data at 9:00 GMT. GBP/USD has also opened with a 50-pips gap up at $1.5930 and rose to $1.5960.
USD/JPY opened with a 55-pip gap down, but then recovered to 99.10 after closing at 99.23 on Friday. It’s a bank holiday in Japan today. USD/CHF opened with more than 60-pip gap down and then rose to 0.9260. AUD/USD opened with an almost 80-pip gap up, then spiked to $0.9392, but then returned to the top of the Ichimoku Cloud in the $0.9320 area. NZD/USD opened with a 70-pip gap up, but then returned to the 200-day MA at $0.8180. USD/CAD has formed a relatively small bearish gap and was pressed to the 1.0300 mark.