Overall, the dollar is again strengthening as the U.S. futures dropped at a sustained pace in the overnight session. Most of the majors are trading near the lows of the last days of trading. If they succeed in breaking lower, strong sell orders might follow, over the medium term.
The Euro (Eur/Usd) rose 70 pips during the early hours of the Asian session, but started to decline as U.S. futures dropped. At the same time, the pair was testing the 20-day moving average. The pair fell 115 pips from tonight’s high, and looks like the decline will continue during the European session.
The Sentix reading resumed its downward path, falling to a new all-time low for the Euro-area. The index fell 6.6 points from February, to -42.7. The Euro-zone's assessment is in-line with the other important regions. According to the release, the current situation index for the Euro-zone reached -59.75, an all-time low, while the expectation index resumed its decline after three consecutive months of improvements.
The Pound (Gbp/Usd) has already plunged 220 pips tonight, as the U.K. financial system has entered into a prolonged slump. Tonight’s selling saw the pair break below the 1.40 level, which had held the pair for almost two weeks. In the last period, the pound’s decline was directly influenced by the health of the financial system.
The Aussie (Aud/Usd) plunged 80 pips overnight, after the pair failed another attempt at the 20-day simple moving average. For the moment, the aussie is struggling to break below the low of the last days of trading, similar with the euro and the pound. In the last few weeks, the aussie’s range has fallen to 180 pips.
The Cad (Usd/Cad) advanced 80 pips tonight, and closed the 30-pip gap seen at the Sunday open. Currently, the cad is trading near the 1.29 area, where it topped in the previous two days of trading. Additionally, this is the fourth major attempt the pair has made to break above this resistance area.
The Swissy (Usd/Chf) moved without too much volume or momentum since the Sunday session started. The pair tried twice to break above the 1.1600 area, but has been rejected, each time, on relatively strong selling volume. On Friday, the swissy topped near the same area.
In February, unemployment in Switzerland rose to 3.1%, as expected. In unadjusted terms, the Swiss unemployment jumped to 3.4% in February, from 3.3% in the period before. Previously the unemployment rate had remained stable for a longer period, near 2.5%
The Yen (Usd/Yen) lacked momentum during the overnight session. The pair fell, in the first minutes after the opening bell, but has started to recover. The yen managed to break above the Friday’s high, after the London open, when the pair formed a large bullish pin bar.
Japan had its first deficit in the last 13 years (in the current account in January) due to the global recession killing demand for exports. The global slump has eroded earnings, which has prompted companies to lay off workers and slow down production. Shipments to the United States, which is Japan’s largest trading partner, plummeted 52.9 percent in January when compared to one year earlier.