As expected, the bulk of market action for the first day of the week came on the release of the G7 communiqué overnight

As expected, the G7 finance ministers issued no statement on FOREX rates in this Sunday’s post-meeting communiqué; traders saw this as bearish USD and JPY as no policy to support Yen is indicated.

The USD is sharply lower overnight as the majors continue to power higher; Yen crosses correcting lower but not until EURO/JPY has made a new lifetime high in Asia.

The greenback is lower again today against the majors for the most part and even the stubborn USD/JPY had a lower close.

Scoring another lifetime high, EURO/JPY took the spotlight and GBP/JPY followed suit as well.

The USD followed-through to the downside overnight losing ground against the GBP before finding support ahead of the New York open.

Both GBP and EURO are poised to advance into new territory for 2007 and aggressive traders can ADD to open longs on a small pullback.

The greenback is marginally firmer after today’s trade but traders note that volumes remained thin post-holiday.

The USD is mixed to firmer in New York this morning as a degree of follow-through buying was seen overnight from Friday’s strong payrolls data.

As expected the USD is very quiet ahead of the NFP number this morning in pre-holiday trade.