FX Trading - Stand Up and Shout

EURUSD and GBPUSD have given up muddling around the lower regions of their ranges (refer to the charts here) and look to climb up north. Everyone's focused on interest rates right now; all else is secondary. Looks like the view at PIMCO pretty much sums up what the market's looking for; an ECB hike possibly next week and BOE to follow in summer, with a series of gradual increases expected. No one really expects the Fed to act any sooner than these two, so the USD takes a back seat for now. ECB's Bini Smaghi (Lorenzo's from the Italian city of Florence, home of the fiorino d'oro, the gold florin) followed Trichet and upped rate hike expectations much like he did back in February. Do you need more confirmation?

Thanks to better than expected Eurozone CPI estimates, EUR's just a stone-throw away from recent highs at 1.4250 as we write, while GBP has yet to make an attempt at 1.6400 like it did last week, although this may just be a matter of time. USDJPY sees support at 81.80-00 levels, while AUDUSD faces a wall of selling at 1.0350, though with market heavily short this pair, we wonder how long this level can be defended.

G20 finance ministers are meeting in Nanjing, China (in the Purple or Purple-Gold Mountain, how beautiful) so expect a whole bunch of comments when they're done. Irish bank stress test results are due later today, but FX traders are unlikely to be too concerned with this.

Peace.