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Overall, the currency market experienced a shock during the European session when the rating agency S&P downgraded the U.K.’s outlook to negative. However, the pound rebounded by the end of the Thursday’s trading session. The dollar index continued to drop a few more points. Moreover, the major pairs continued to advance against the dollar even in the Asian session, sending the dollar index to the lowest value since January. It should be noted that, the currency market lost its connection with the S&P futures on Thursday.

The Euro (Eur/Usd) had a 30 pips range during the overnight session, possibly due to the bank holiday. It picked up momentum and was able to trend higher during the U.S. session. At the end of the day, the euro advanced 130 pips as the dollar declined across the market. Additionally, the euro extended its gains during the Asian session, gaining 40 pips. On Friday, the euro’s calendar is empty. 

The Pound (Gbp/Usd) traded relatively flat in the early part of the overnight session, but it plunged more than 250 pips in just a few minutes during the European session, after the ranting agency S&P downgraded its outlook on the U.K. economy. However, the decline was erased during the rest of the day, and it was even able to advance a little on Thursday. 

The Aussie (Aud/Usd) is currently testing the 0.7800 area, where the pair topped over the last few days of trading. On Thursday, the pair lost 70 pips during the U.K.’s downgrade, but the move retraced during the second part of the U.S. session.

The Cad (Usd/Cad) just broke below the 1.1365 area, the support of the last two days of trading. Interestingly enough, the cad was able to pull off the move with very light volume tonight. With tonight’s declines, the cad is trading near the lowest value since October. 

The Swissy
(Usd/Chf) made a new low tonight for the current year, as the swissy has been strengthening for the last five consecutive days. Yesterday, during the Thursday session, the pair moved side-ways until the U.S. trading hours, when it declined more than 100 pips. 

The Yen (Usd/Yen) closed lower for the third consecutive day on Thursday, as the Japanese yen continued to strengthen against the dollar. During tonight’s Asian session, the yen dropped 50 pips, but then quickly retraced.. For now, the yen is trading below all of the important moving averages, expecting the Bank of Japan’s interest rate decision. 
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