Overall, the dollar found buyers in the overnight market, although not too many. The euro and the swissy were the only pairs able to develop a decent trend, while the rest of the majors put a lot of effort to break free from the first support or resistance area. During the European session, the S&P futures had a very strong influence over the currency market.
The Euro (Eur/Usd) struggled to break above the 1.2750 area during the overnight sessions. The resistance area finally gave up during the European session, after holding since the last U.S. session. During the Asian session, the euro tested the 1.2700 area, which has held the pair for four days now.
Consumer confidence in the Euro-area fell to -33, the lowest read since the index first started. The very poor read points to a very clear contraction in the Euro-area. The Euro zone M3 number hit the wires at 5.9% much lower than what analysts had previously estimated. The number for the month of December was revised to 7.5%
The number of unemployed persons looking for a job in Germany for the month of January rose by 40K, less than what analysts had expected. The unemployment number in Germany has been in a strong downtrend since 2005, but it seems the economic slowdown that the German economy faces had reach the job market. The consumer climate in Germany for the month of March 2009 rose unexpectedly. The previous read, for February, was revised slightly higher to 2.3
The Pound (Gbp/Usd) traded around the Asian open price, unable to move decisively in any direction. This happens, after yesterday the pound tumbled nearly 320 pips, and was able to find a bottom near the 1.42 support area. The pair continues to trade below all the important moving averages.
U.K. house prices have continued to decline for sixteen straight months, falling 17.6% year-over-year. The average price for a U.K. house in February reached £147,746. Analysts believe the bottom in the housing market has not been hit, even though some improvements have been seen in the last months.
The Aussie (Aud/Usd) has been unable to develop a solid trend recently. The aussie traded between the low of the last day of trading, reached in the U.S. session, and the 20-day simple moving average, which has acted as an important swing point for a number of days.
The leading index for Australia has decreased 0.9 percent for the month of December, falling to a reading of 114.1. This is the fourth consecutive decrease for the index. The leading index began its descent in September 2008 and it has only accelerated in recent months as the fall rivals levels seen in early 2001
The Cad (Usd/Cad) shed a small number of pips in the Asian and European sessions. The pair fell 30 pips, but failed to break below the neutral pivot point (1.2520). For the remainder of this week, the cad’s calendar is free of any important economic releases.
The Swissy (Usd/Chf) traded relatively flat during the Asian session and in the early part of the European trading hours. After a quick test at the previous day’s high, in the European session, the swissy started to head lower, falling 50 pips. In the last few days, the swissy traded within the same range.
The Yen (Usd/Yen) advanced in the overnight session, but could not break above TheLFB R1 (98.00) area. The yen rose in recent days even though the S&P futures were pointing to a weaker start on Wall Street. Today, the S&P futures advanced something that should further strengthen the yen