As I mentioned in a previous post, sometimes the asian trade tend to extend the sentiments from the overnight session.
During the NY trade last night, higher yielding currencies and their crosses were sold ernestly as the asian market woke up in 'risk aversion' mode.
Carry trades like EURJPY and GBPJPY fell about 100 pts in the early morning before rebounding higher.
But these eventually turned positive in the evening, helped by a surprisingly good Apr ZEW survey outcome (+11 vs -2 expected if my memory serves me right).
The ZEW measures investor or business sentiment and is an important forward looking data for the German economy and is usually one of the more important economic data.
EURUSD, GBPUSD and their crosses surged, recouped all losses and went beyond thereafter.
If one manages to follow and trade the general trend down and up, it can be very rewarding as the mentioned currency pairs remained in defined channels for large parts of the day and did not turn up nasty surprises suddenly.
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