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Overall, the currency market saw side-ways action during the first part of Thursday’s trading session. The major pairs were able to move higher against the dollar throughout the remainder of the U.S. session, helped by the S&P futures. Most of the dollar’s decline came after the 8:30 EST releases, which gave further signs that the global contraction is abating. The next major swing point for the currency market is to take out the highs set at the beginning of June.

The Euro (Eur/Usd) had a wide range of trading during the first part of the day, as the pair was unable to break above the 1.4050 swing area. However, the resistance area failed relatively quickly during the U.S. trading hours, as the S&P futures posted strong gains. The euro’s calendar was free from any important Euro-area releases.

The Pound (Gbp/Usd) started Thursday’s trading session on light momentum, but the pair experienced a surge in momentum and volume as the U.S. trading hours got underway. On the daily chart, the pound has been heading higher for four consecutive trading days, which helped the pair approach the 1.6650 area, where the pair topped on 06.03.

The Aussie (Aud/Usd) picked up 200 pips during Thursday’s trading session, or 2%, posting again the biggest advances in percentage terms among the major currencies. The Australian dollar is currently empowered by an economy that managed to avoid the global recession, and by a strong commodity, which helps the Australian currency strengthen against the dollar. With today’s gains, the aussie reached once again the 0.8200 area, where it topped near the beginning of June.

The Cad (Usd/Cad) spent most of the overnight session trading just below the neutral pivot point (1.1060). The pair was able to move lower during the U.S. trading hours, as the market’s momentum increased significantly. For now, the cad is trading near the low reached on Wednesday.

The Swissy (Usd/Chf) followed the euro very closely during the Thursday’s trading session, most of the time moving only together. The pair struggled to move lower during the overnight session. However, throughout the U.S. trading hours the swissy did make its way lower, declining nearly 120 pips.

The Yen (Usd/Yen) had weak momentum during the overnight session, but the pair started to move on a stronger volume as the market was heading towards the U.S. open. The pair fell as much as 50 pips during the overnight session, but recovered most of the ground loss in the second part of the European session. During the U.S. trading hours, the yen headed only lower declining another 80 pips.  

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