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Overall, the currency market saw a very volatile day on Thursday, affected by the three interest rate decisions. Consequently, the major pairs lost any link between them, and it all came down to a regional story. The euro, aussie and the swissy formed doji-star patterns on the daily chart, the pound and the Japanese yen declined against the dollar, while the cad was the only pair that managed to post substantial gains compared to the greenback. Even though the market saw considerable momentum during the second part of the European session/U.S. open, the currency market is barely moving now. Ahead, investors are preparing for the infamous Non-farm payroll release.
The Euro (Eur/Usd) saw a very volatile day on Thursday, as the pair was affected by a busy calendar, which included 3 interest rate decisions, a press conference and 10 red-flag releases throughout the trading session. As such, the pair saw a number of swings during the trading day, reflecting the market’s activity. During the European session, the euro rose 100 pips, but the pair dropped another 170 pips in anticipation of the U.S. open. Following the interest rate announcement made by the ECB, the euro started again to move higher, something that helped the pair finish the day in the green. 

The Pound (Gbp/Usd) dropped nearly 300 pips in less than 5 minutes on Thursday, probably triggering one of the strongest moves on record. The pair’s plunge came after the ECB’s decision, which most interpreted as a shock by market participants. For now, the pound is trading slightly above the 1.6080 area, the support area that was able to sustain the pair’s sudden drop. Over the last two days of trading, the pound lost 450 pips.

The Aussie (Aud/Usd) spent most of the time trading in a 30-pip range. The only exception came during the U.S. open, shortly after the ECB’s interest rate decision, when the pair plunged 160 pips in less than 5 minutes. However, the move was completely retraced during the rest of the trading session. During tonight’s Asian session, the aussie moved only side-ways. 

The Cad (Usd/Cad) maintained weak momentum throughout the early part of the overnight session, but the pair started to gather momentum as it headed towards the interest rate decision. During the U.S. session, the pair fell more than 200 pips, something that helped the cad retrace half of the declines seen on Wednesday. In the late U.S. session and in the early Asian trading hours, the pair moved on very thin momentum, once again. 

The Swissy (Usd/Chf) formed a doji-star pattern on Thursday, as investors were unable to move the pair decisively in any direction. Most of the time, the swissy traded flat in a relative tight range, but following the ECB’s interest rate decision, the pair surged more than 100 pips. Moreover, the market retraced the move in the following few minutes. 

The Yen (Usd/Yen) headed higher most of the time on Thursday, as the S&P futures tried again to break above the intra-day resistance area. Even though the yen gained 70 pips, it still traded within the range of the last few days. For now, the yen is trading between the 200-day moving average (dma), which acts as a resistance, and between the 20 and the 100-dma, which acts as a support area. 

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