Overall, the Asian session started slowly, but picked up a lot of momentum as the market was heading towards the London open. During the overnight trading sessions, the market’s risk-aversion phase continued, having the dollar strengthen across the board. The European session has been driven by risk-aversion and by movement in the S&P futures every day of the week, except for Monday. 

The Euro (Eur/Usd) saw strong sell orders during the overnight trading hours. The pair declined 115 pips during the Asian session, took a deep breath at the London open, but soon after, the pair’s selling wave resumed. In addition, the euro broke below the support area that held the pair for almost two weeks, during the European session

The Euro-area adjusted trade balance was released at -4.7B in February, better than expected. In February 2009 compared with January, seasonally adjusted exports rose by 0.5%, while import declined by 0.8%.

The Pound (Gbp/Usd) fell sharply during the Friday morning trading session. The pair was sold, as the dollar strengthened against almost all of the other major currencies. The pound declined 150 pips since the Asian session started, currently holding near TheLFB S1 (1.4815).

The Aussie (Aud/Usd) was the only major pair that managed to withstand the greenback’s strength during the overnight session. The aussie moved 50 pips overnight, but most of the time the pair traded in a 25-pip range between the Asian open price and the neutral pivot point (0.7215). Additionally, the aussie trades just above a 4h trend-line that has held the pair since the beginning of March

The Cad (Usd/Cad) traded virtually flat during the Asian session, but started to move higher during the European session. However, the cad soon hit the 1.2145 resistance area, where it also peaked during the previous day of trading, on Thursday. Movement in the pair may be contained until the released of Canadian CPI data this morning.

The Swissy (Usd/Chf) had a very strong overnight session. The pair is currently testing the 1.1625 resistance area, after it broke above the 50-day simple moving average and gained 120 pips since the Friday session started. The pair is currently trading at the highest level seen in 4 weeks.

Swiss retail fell more than expected in February from one year ago, by 3.8% compared with the -0.2% expected. At the same time, retail sales declined 3.1% from the previous month, January. Over the last few months, retail sales has risen strongly, but this trend may reverse, in-line with the fatigue seen in the economy.

The Yen (Usd/Yen) rose 40 pips during the first part of the overnight session, but gave up the gains as the market headed towards the London open. Since then, the pair traded side-ways above the opening price of the Friday session. Additionally, the yen is currently trading above an important support area formed by the 20 and the 200-day simple moving averages.