Here is the key factor to keep in mind today for Euro trades:

• As far as economic reports are concerned it will be a very quiet trading session today. The US is closed for a holiday which means volatility as well as trading volume will be rather light especially during the afternoon session in Europe. The morning session was rather quiet as well and the only meaningful market movements were visible during the Asian morning session as traders made positions adjustments. With the lack of new economic reports scheduled for release, forex traders were left without any fundamental factors to adjust positons or to take meaningful new trades. Many traders and their orders may remain on the sidelines and observe a lackluster forex sessions while any moves will come on the back of light volume and therefore rendered insignificant. In respect to the EURJPY, with the lack of economic news which directly impact the Euro, forex traders should look towards the sole economic report released today out of Japan as it may dominate the light volume moves.

Here is the key factor to keep in mind today for Japanese Yen trades:

• Japanese Merchandise Trade Balance: Today’s release of the Japanese merchandise trade deficit has taken a more significant role given the lack of other economic reports scheduled for release. Economists expected a merchandise trade deficit of ¥351.1 billion for April and an adjusted merchandise trade deficit of ¥386.8 billion. The released report came in a lot stronger than expected and showed a merchandise trade deficit of ¥351.1 billion for April and an adjusted merchandise trade deficit of ¥386.8 billion. Forex traders can compare this to the downward revised merchandise trade surplus of ¥227.4 billion for March and an upward revised adjusted merchandise trade surplus of ¥5.0 billion. Merchandise trade exports were expected to increase by 6.0% in April while merchandise trade imports were expected to drop by 1.1%. The released report showed a much better increase in merchandise trade exports which rose 8.0% while merchandise trade imports dropped by 4.2%. Forex traders need to compare this data with the 8.5% increase in merchandise trade exports reported in March and with a plunge of 14.5% in merchandise trade imports. The better than expected level in merchandise trade exports is a healthy sign for the global economy and forex traders may want to look for a stronger Japanese Yen.

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