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Overall, the dollar strengthened across the board during the Asian session, in-line with S&P futures movement. However, after the London open and after the futures market bounced from the 865.00 area, the major pairs started trading mixed. As such, the euro and the swissy showed some resilience to the dollar’s strength, while the pound and the aussie were the worst performers of the session. At the same time, the yen strengthened against every other major currency as the forex market as practised risk-aversion. Judging from the behavior of the S&P futures during the overnight session, the market is very likely to remain risk free.

The Euro (Eur/Usd) traded between the 20 and the 50-day moving averages during the Asian and the European session. The pair moved lower throughout the Asian session, but after the London open, the euro stated to heading higher and showed resilience to the strength the dollar posted compared with the other pairs. 

The Pound (Gbp/Usd) has already dropped 150 pips since the Sunday session started, and looks to be the weakest among the major currencies. The pound was able to find a bottom only near the 50-day moving average, but, if the risk-aversion phase will continue, this support area might not be able to hold things for too long.

The Aussie (Aud/Usd) moved lower throughout the overnight session, as S&P futures tested the 865.00 resistance area. This, in turn, has made the pair break below the previous support areas, and reach the lowest value since late May. 

The Cad (Usd/Cad) had weak momentum during the overnight session, something that allowed the pair to test only the high and the low reached on Friday. Over the last three weeks of trading, the cad had been trading in an upward channel, even if oil was sold at a strong pace over the same period. 

The Swissy (Usd/Chf) rose as much as 45-pips during the overnight session, testing the 50-day moving average. However, the move was retraced and now the swissy is once again trading below the 20-day moving average, near to Sunday’s opening price. During the European session, a release showed that producer prices have remained constant in June from one month previously. 

The Yen (Usd/Yen) showed signs of weakness during the overnight session, especially after Japan’s opposition party, which recently won the local elections, said that Japan should move away from its dollar reserves. With this claim, each of the biggest U.S. Treasury holders have announced their plans to switch in stages from the greenback.