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Overall, the currency market traded side-ways during the overnight session, but was able to advance when compared to the dollar only after the S&P started to actually move higher. Most of the gains came during the U.S. session on Thursday, something that does not happen very often. In tonight’s Asian session, the market moved relatively slow as investors prepare for the Euro-area GDPs releases. Any divergence from the expected numbers will probably be reflected in the currency market.
The Euro (Eur/Usd) was not able to develop a clear direction during the overnight session on Thursday, even though the pair had a 90-pip range. However, the euro moved higher and pulled the other major pairs with it only after the S&P showed a solid trend. The pair almost came to a standstill during the Asian session.
The Pound (Gbp/Usd) saw very little movement until the second part of the European session, when the pair’s volume increased substantially. At first, the pound declined 90 pips, but soon after the pair reversed everything from the earlier run. During the Asian session, the pound traded in a 35-pip range.
The Aussie (Aud/Usd) was among the only pairs that did not trade side-ways during the overnight session on Thursday, reflecting a 70-pip drop. During the U.S. session, the aussie surged higher, inline with the other major pairs.
The Cad (Usd/Cad) traded in a 60-pip range during the Thursday trading hours, but eventually broke the range’s support level during the late U.S. session. The cad has advanced strongly in the last few weeks, but now the pair lacks a clear direction as crude oil struggles to break above the $60 area benchmark.
The Swissy (Usd/Chf) traded similar with the euro in the previous day of trading, on Thursday. The swissy tested twice TheLFB R1 (1.1120) during the overnight session, but started to move lower only after the S&P futures broke the 887.00 resistance level.
The Yen (Usd/Yen) rose for the first time in the last five days of trading, on Thursday. The 100-day moving average helped the pair advance, acting as a strong support area, in addition to the positive U.S. equity market. Investors shed their Japanese yen holdings quickly after. During the Asian session, the yen declined 30 pips.
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