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Overall, the greenback found buyers on Friday morning as commodities headed lower. Despite this, global equity markets failed to move decisively anywhere, continuing to look reluctant to move out the range seen over the last few weeks of trading. During the overnight session, the dollar strengthened against every other major pair, reversing some of declines observed in the previous day of trading. The currency market is expected to have a strong volume throughout the U.S. session..
The Euro (Eur/Usd) is once again heading lower, as investors are unsure about the global recovery theme. Over the last four days of the trading, the euro traded in the same range, unable to break any important price point or swing areas. Moreover, the Euro-area had a very light calendar this week, something that was reflected in the pair’s behavior.
The Pound (Gbp/Usd) lost 100 pips throughout the overnight session, as the dollar strengthened against every major pair. With today’s declines, the pound erases almost half of the upside trend observed in the previous day of trading, and it moves further away from the 1.6650 resistance area.
The Aussie (Aud/Usd) lost approximately 70 pips during the overnight session, allowing the pair to break below the neutral pivot point (0.8145). The aussie’s weakness comes as the commodity market moves lower for the first time in the last few days of trading and as the global equity markets remain unable to break anywhere decisively.
The Cad (Usd/Cad) rose more than 100 pips on Friday as crude oil moved lower. The strength the Canadian dollar posted over the last few weeks of trading came mostly from the crude oil market. If the cad continues to advance it will soon hit the 20-day moving average, which has not been broken for over one month.
The Swissy (Usd/Chf) and the euro had a very high correlation in the last two days of trading, practically mirroring each other’s move. During the overnight session, the swissy gained 50 pips, and tested briefly the 1.0740 area, which acted as an important swing point over the last two days of trading.
The Yen (Usd/Yen) tested quickly the 50-day moving average during the Asian trading hours, but the currency market sent the yen higher soon after. As in the last few days of trading, the yen had an overall weak momentum, managing to gain only 60 pips since Friday’s open.
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