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EURUSD <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Actuals picked up the slack on a dip of the implieds over the week bringing the differential slightly higher to retest the lower band.  Now, with actuals hovering over implieds, the latter probably will follow adding momentum to carry the spread through the band completing the breakout suggestion.  Subsequently, the suggestion coincides with current consolidation and may be reflective of a break to the upside, past the impenetrable 1.2900 and 1.3000 figures.  Fundamentals make a boost for the scenario as dollar weakness continues to loom over the market. 

GBPUSD

Implieds dipped further compared to actuals that rose the most of all the majors on the week.  This subsequently carried the spread lower throughout the week, rebounding towards end to complete a breakout suggestion in line with euro sentiment.  British fundamentals have been improving along with the sentiment of rate hikes towards yearend which have boosted the underlying spot price. Further near term volatility looks to be sparked by the weeks <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />US employment report, strengthening the notion of an upside breakout above the 1.8900 figure.  Subsequently, this will make the 1.9000 an increasingly important future in the near term.

USDJPY

Plunging throughout the week, short term implieds declined through the lower band only to tick slightly higher as actuals rose.  Similar to the previous two measures, yen differentials looks to purport a breakout suggestion as well, should near term volatility peak provide enough upside change occurs.  Mid week data bolsters the notion that Japanese fundamentals are on the mend and increases the likelihood of a rise in interest rates.  As a result, the weeks key employment report would also add to near term volatility that would underpin a break of the 111-113 band that the underlying spot has been trading in for the past couple of weeks.

USDCHF

Reversing the earlier decline, the Swiss differential looks ripe for a breakout, the overall theme of the majors it seems.  The notion would entail a break of the1.1900 figure and below as dollar sentiment remain pessimistic.  However, on the contrary there is plenty of Swiss data that is supportive of the current surplus, standing at 11 percent of overall gross domestic product.  Similar to the previously mentioned majors, actuals hover over implieds which may be suggestive of further upside in the spread.

USDCAD

Choppy volatility as the currency pair has become a relative commodity play in conjunction with crude oil contracts for the week.  As a result, the spread has seen some action with the final result being a peak above the lower band.  Suggestive of a breakout, directional bias seems unclear at this point with the current spot testing the 28-year low just below the 1.1000 figure.  Actuals remain above implieds at current measure, although not by much with the spread remaining tight between the two.  Further downside may be imminent and looks widely dependant on further economic data in coming days.

AUDUSD

Aussie spreads have curtailed back above the lower band to be indicative of a breakout scenario in the major currency pair as technicals flirt with current support at 0.7500.  Subsequently, fundamentals have been optimistic with special emphasis on the weeks retail sales figures which surpassed consensus by almost five fold.  This has built speculation of continued rate hikes as inflation continues to rise and may help the underlying build back.  As with the other majors, the US employment report will weigh heavily on the pair with expectations remaining weak.  The pair still depicts the widest range of the six with an incremental rise over the week, the only positive change of the group.