Overall, the dollar seems to continue to strengthen during the Asian session, after posting relatively strong gains on Thursday. Ahead, the calendar is clear in the two major regions, Europe and the U.S., as trade desks prepare for the Easter holiday. Liquidity is expected to remain low for the rest of the trading day.
The Euro (Eur/Usd) plunged 100 pips on Thursday, while equity markets traded in the green. The euro may have come under pressure from the gains in the crude market on Thursday, which created automated long-dollar orders. In the Asian session, the euro dropped another 60 pips, breaking below the 100-day moving average.
The Pound (Gbp/Usd) struggled to find a direction to trade over the last few days. This may have been seen on Thursday when the pair changed the direction of trade from one session to the other. At the end of the trading day, the pound formed a doji-start pattern, but fell 50 pips lower during the Asian trading hours.
The Aussie (Aud/Usd) has been trading with a lack of direction over the last four days, but on Thursday surged 100 pips in a period when the dollar was gaining ground against all the other major pairs. The positive momentum may have come from the fact that equity markets were trading in the green, while commodity markets were posting significant gains. In the Asian session, the pair traded flat.
The Cad (Usd/Cad) fell almost 120 pips on Thursday, after the Canadian economy posted an unexpected trade surplus. For now the cad trades just above the 1.22 support level that has held the pair since late January. Yesterday, only the aussie and the cad strengthened against the dollar.
The Swissy (Usd/Chf) lacked momentum to hold above the 50-day moving average on Thursday, even though the pair broke higher during the intra-day session. During the Asian session, the resistance level was re-tested, and was unable to hold.
The Yen (Usd/Yen) started the Thursday trading session moving very little, but gathered momentum as the market headed towards the U.S. open. At the end of the day, the yen gained 70 pips, almost paring the declines seen on Wednesday. In the Asian session, the pair advanced another 25 pips.