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Overall, the currency market was unable to break decisively overnight, as the S&P futures trade below the 945.00 resistance area. If the equity index does break higher, it will extend the current Bull Run, pulling the major currencies with it. The important release calendar might provide a strong grip for the S&P futures and for the currency market.
The Euro (Eur/Usd) traded in a range of approximately 50 pips during the early part of the overnight sessions, as the pair tried to break decisively in one direction. The pair eventually broke lower, as the S&P futures failed a test at the 945.00 resistance area. Tomorrow, the market expects the ECB to keep interest rates on hold at 1%.
The Pound (Gbp/Usd) had a very small range during the Asian session. However, the pound gathered additional momentum during the European session, which helped the pair test the 1.6650 area, the highest value touched since late October. For now, the pound appears to be trading within an upside 4 hour channel.
The Aussie (Aud/Usd) reached a new high during the overnight session, as a report showed that the Australian economy expanded unexpectedly during the first quarter. With tonight’s gain, the aussie reached a new high for the current year.
The Cad (Usd/Cad) extended the range seen in the late U.S. session during the overnight session, as the pair tried to break below the 1.0800 level. The Canadian dollar may have a strong sentiment during the European session, as oil managed to hold near the $68.90 area.
The Swissy (Usd/Chf) struggled to break below the 1.0600 level during the late U.S. session and then throughout the overnight session, but has failed so far. After the London open, the swissy bounced off the support level, and rose 40 pips to break above the neutral pivot point (1.0645)
The Yen (Usd/Yen) has traded over the last few days one day up, the next day down within the same trading range. Tonight, the yen followed the same pattern laid in the previous days of trading, and gained 40 pips. Additionally, the yen trades between the 20 and the 100-day simple moving averages tonight.
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