European FX volumes remained low in holiday thin trade, which restricted the FX majors to their familiar ranges. The EUR/USD traded underneath the 1.4000 level for a large part of the European morning. An early move higher ran out of steam at 1.4020, with weak Euro-Zone fundamentals still encouraging euro short positioning. The GBP/USD maintained a heavy tone the losses accelerated to 1.4773 after weak U.K. fundamentals encouraging selling pressure, which also resulted in a decent bid in the EUR/GBP just below 0.9400 and the cross rallied back in to 0.9480. Elsewhere, Japanese Yen continued to trade in ultra-narrow ranges after a Tokyo holiday saw limited direct flows, while the CHF was led by interest going through the dollar and the euro. The EUR/CHF remained heavy in the low 1.52's, while the USD/CHF traded back below 1.0900.
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