Overall, the currency market was driven yesterday by the risk-aversion in the overnight session, during which the majors declined at a strong pace. However, during the U.S. session, the currency market started to slowly buy risk and by the end of the U.S. trading hours, the majors had a rally against the greenback. Ahead, the European session holds some top tier releases, coming from Germany and the Euro-zone. In addition, the G7 meeting will start today, and some countries are expected to complain about the FX volatility and some exchange rates.

The Euro (Eur/Usd) finished the last day of trading forming a long-legged doji pattern. The euro declined initially 170 pips during the European session, testing again the 1.2750 area, but recovered everything back in the U.S. session. During the Asian session, the euro traded flat, moving around 30 pips.

The Pound (Gbp/Usd) closed lower for the third consecutive day. During the overnight trading hours, the pound plunged nearly 250 pips, but it recovered most of these declines during the U.S. session. In the Asian session, the pound rose 80 pips, already testing the 20-day moving average.

The Aussie (Aud/Usd) broke briefly under the 0.6500 support level yesterday, for the first time in the last few days, while on the upside, the aussie is held lower by the 20-day moving average. In the last two days of trading, the aussie formed two consecutive doji-star patterns.

The Cad (Usd/Cad) traded exactly within the same range as it did on Wednesday, however this time the pair moved very volatile. In the overnight session, the cad had a relatively small range of trading, 50-pips, but during the U.S. session, the pair started to trade with very large swings. Still, the cad was not able to break above the 1.25 level.

The Swissy (Usd/Chf) formed a doji-star in the last day of trading, denoting the market’s indecision. The pair’s trading range was 160 pips, but it never managed to break anywhere successfully. In the Asian session, the swissy traded flat, in a 20-pip range.

The Yen (Usd/Yen) gained 60 pips yesterday, and closed above the 50-day moving average. During the U.S. session, the pair lost its link with the U.S. equity market, as the yen advanced and the S&P was making new lows. In the Asian session, the yen fell down to the neutral pivot point (90.55), but later started to head higher.