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Overall, the currency market saw limited momentum during the Sunday session as both the U.K. and the U.S. financial markets will be closed on Monday. More often than not, the market moves side-ways unaffected by most news reports on bank holidays. However, one should note that in a number of occasions the currency market has had some very strong moves in low-liquidity environments.
The Euro (Eur/Usd) reached the highest value in the last six months of trading, as investors look to diversify from the safety of the U.S. dollar. This, in turn, made the euro and the other major pairs advance over the last 5 weeks of trading to reach multi-month highs against the greenback.
The Pound (Gbp/Usd) lost almost 50 pips tonight, as trade desks lock in their profits left as they advance in to a market without any momentum. Over the last few days of trading, the pound strengthened very strongly, even though the U.K. was downgraded by the S&P. Last week, the pound gained 750 pips.
The Aussie (Aud/Usd) moved very little tonight, during the Sunday open. The pair opened the new trading week near a seven month high, but so far, the currency market saw only limited movement. Among the major pairs, the aussie pays the biggest overnight swap.
The Cad (Usd/Cad) declined strongly last week, the most since November 2008. The cad declines come as the dollar weakened against every other major pair, and oil managed to break and hold above the $61 level last week. Moreover, in the last few days of trading, the cad developed a downward channel.
The Swissy (Usd/Chf) is trading under the 1.085 resistance area, an area it broke on Friday. For now, the swissy is trading near the lowest value it touched since January, as the dollar declined across the board.
The Yen (Usd/Yen) had a 20-pip range during the Sunday session, trading barely above the neutral pivot point (94.50). During the late Friday session, the yen broke above an intra-day resistance trend-line that held the pair lower for the last few days of trading.
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