Forex Market Update.

Today's action was spurred by news reports that troubled US bank Citigroup was in ongoing negotiations with the US Government where the government could take as much as a 40% stake in the company. The move was seen as positive for equities, and as the US stock futures soared, the Dollar continued with its losses from Friday, and the moves were severe. The EUR/USD was hovering near its session lows of 1.2778 when the news crossed the wires and subsequently skyrocketed to over 1.2945 as traders digested the news. The lack of liquidity helped to exacerbate the move as stops were triggered the whole ride up. It would seem that risk appetite has evidently made a comeback in the markets to start the week. USD/JPY saw similar moves, as the pair slid from highs near 93.64 and touched bottom near 92.76. Although closer to 92.90 entering London, the pair still looked soft.
The Yen's status as a ''safe-haven'' have been crushed as of late simply due to the poor state of the Japanese economy as well as the poor showing of the elected government there.
EUR/JPY made a healthy move North, hitting over the 120.45 level after slumming around the 119.00 figure earlier.

The Pound continued to defy odds, as it got within reach of 1.4550, not a bad feat considering it was at 1.4151 on Friday. Other impressive moves could be seen in the USD/CAD and USD/CHF pairs, as the Loonie dropped from 1.2554 to just near 1.2435, and USD/CHF since Friday, dropped from 1.1876 to under 1.1500 today. These are huge moves no matter how you look at it. Moves will continue to be sparked by news, so be prepared for fireworks early and often this week as Tuesday President Obama will speak in primetime.