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Overall, the Sunday open started with the dollar and the yen strengthening against all of the other major currencies. The dollar’s strength comes on negative U.S. futures and on negative Asian equity markets, which was seen very often last week. Ahead, the release calendar is light today, something that may create more room for the currency market to expand the general sentiment of risk aversion/tolerance.
The Euro (Eur/Usd) is testing the 200-day moving average, after it lost 210 pips on Friday and tonight during the Sunday open. The euro’s decline is inline with the overall market direction, which seems to jump into dollar long positions no matter what tonight.
The Pound (Gbp/Usd) was unable to move decisively anywhere over the last few days of trading. Last week, the pair traded only side-ways with a weekly range smaller than 300 pips. This was most likely a consequence of mixed signals coming from the U.K. with some points alluding to a quick recovery while others mentioning a slow one.
The Aussie (Aud/Usd) hit a new low the last two weeks of trading tonight. The pair lost ground as it seems the market continues to trade in a risk-aversion mode, something that empowers the dollar and the yen compared to the higher yielding pairs.
The Cad (Usd/Cad) reached its highest value in a week, as the Canadian dollar lost some of its strength recently. The currency’s decline came as crude oil, the commodity that backs the Canadian dollar’s strength, lost some of its value in the last few trading sessions. The cad has an empty calendar on Monday.
The Swissy (Usd/Chf) is trading under the 1.2040 swing area, helped by the gains seen on Friday when the pair gained almost 200 pips in just a few hours. Most market participants say that this was an intervention made by the SNB, even though such an action was officially denied.
The Yen (Usd/Yen) is currently re-testing the 94.75 area, where the pair bottomed on Friday. Additionally, the yen opened below the 100-day moving average for the first time since February. Over the last few days of trading, the Japanese yen saw a lot of strength, something that made the currency advance against the dollar in 5 out of the last 6 days.
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