Overall, the currency market moved very slowly during the overnight session. This is a normal consequence of the previous day’s trading, when the major pairs saw huge volatility. Additionally, the market is heading towards the NFP release, which is known for its instant market reaction. Momentum is likely to drop even further, as the market heads towards the NFP release, but most likely will pick up after.
The Euro (Eur/Usd) declined 50 pips during the early part of Asian session, but during the late Asian session, the euro started to move higher. However, the market’s momentum was very low, which stopped the pair from breaking any important price point. Currently, the euro is trading slightly below the 200-day simple moving average, but between the 23.6% and the 38.2% retracements of the downside trend that lasted from July to late October 2008.
The Pound (Gbp/Usd) also had very weak momentum during the overnight session. The pair only managed to move within the range of the last U.S. session, after yesterday the pound was sold heavily. On the daily chart, the pound is now struggling to break above the 23.6% retracement of the trend that lasted from July 2008 to January 2009.
U.K. input factory prices declined for the first time in the last four months, extending the declines seen over the last year. The input prices, or the price at which producers and manufacturers buy materials and fuel, declined in April by 1.0%, much more than expected. The output price, or the price at which manufacturers sell, gained 0.6% for a fourth consecutive month. Input prices are down 5.0% from one year ago while output prices fell to 1.2% in April from one year earlier.
The Aussie (Aud/Usd) traded mostly side-ways during the overnight session, near the opening price. In the previous day of trading, the aussie was the only pair that moved only higher against the dollar. On the daily chart, the aussie recently broke above the 38.2% retracement, of the downside trend that lasted from July to October 2008.
The Cad (Usd/Cad) fell 50 pips during the European trading session, breaking below the neutral pivot point (1.6995). In the last period, the Canadian dollar was pulled higher by the gains seen in the crude oil market, but this was not the case on Thursday or today. The daily chart shows that the cad broke below the 38.2% retracement of the trend that lasted from May 2008 to March 2009.
The Swissy (Usd/Chf) moved very little since the Friday session started, falling 30 pips. Over the last few days of trading, the swissy has traded in a 100-pip range, unable to break anywhere decisively as it seems the SNB is preparing again to intervene in the currency market. On the daily chart, the swissy is trading slightly above the 38.2% retracement of the trend started in March 2008 until November 2008
In April, unemployment in Switzerland rose to 3.4%, as expected. In unadjusted terms, the Swiss unemployment rose to 3.5% in April, from 3.4% in the period before. According to the release source, there were 136,709 unemployed persons in April. Previously the unemployment rate had remained stable for a longer period, near 2.5%.
The Yen (Usd/Yen) also saw little movement during the overnight session. The yen traded between the 98.90 support area, where the pair also bottomed in the U.S. session, and the 99.40 resistance level. Currently, the yen is trading above the 50% retracement of the trend that lasted from August 2008 to January this year.