Overall, the market found some additional momentum during the European session, but until now some pairs have moved less than the daily average. So far, into the European session, the dollar continued to strengthen helped by the declines in the U.S. futures market and by the negative crude oil market. As has been the case over the last few trading days, this may change as companies start to report quarterly results during the U.S. open
The Euro (Eur/Usd) had a 30-pip range during the Asian session, but, helped by the London open, the euro broke below a trend-line that has held the pair since Monday. However, the moment was short lived since the pair quickly retraced the decline, re-testing the previous intra-day support area, which has now become resistance.
The Pound (Gbp/Usd) had a very busy economic report schedule during the European session, which was responsible for the pair’s momentum. In the European session, the pair bounced off the 20-day simple moving average and at the same time from a trend-line developed in the last U.S. session, triggering some rather strong selling orders.
The BoE’s minutes from the meeting held at the beginning of April shows that the committee had voted unanimously to maintain the Bank Rate at 50 basis points and continue with the asset-buying program, started last month. The unemployment rate increased again in the U.K. in the latest three months to February 2009, to the highest rate seen in the last decade. The released rate of 6.7% is in-line with market expectations. The number of people seeking unemployment increased again in March to the highest value in the last 12 years. The report shows there were 1.46 million persons on the claimant count in March, and up by 73,700 from one month earlier
The Aussie (Aud/Usd) bounced lower from the 20-day simple moving average in the early Asian session, and resumed its downward trend. The pair saw selling orders in both the European and the Asian trading sessions, causing the pair drop 100 pips.
The Australian consumer price index came in at 0.1 percent for the March quarter 2009, which is below what economists had forecasted, but higher than the 0.3% drop in the December quarter 2008. The CPI rose 2.5% through the year to March quarter 2009, compared to an annual rise of 3.7% to December quarter 2008
The Cad (Usd/Cad) moved without significant volume during the European and Asian trading sessions. Additionally, during the last day of trading, the pair formed a pin-bar at an important swing area, after the BoC reduced the monetary policy stance by 25 basis points.
The Swissy (Usd/Chf) extended the trading range of the last few days of trading during the overnight session. The pair moved in a 25-pip range during the Asian trading hours, but struggled to break higher in the European session. However, until now the pair has not had the needed momentum to maintain the highs of the day.
The Yen (Usd/Yen) continued the downward move during the overnight session that started during the late U.S. session. As such, the pair has declined 60 pips since the Wednesday trading session started, after bouncing from the 200-day simple moving average. During the European session, the yen hit the intra-day support area that has held the pair throughout the week.