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Overall, the currency market saw a light session of trading through the early European hours. The market had some attempts to break higher during the first part of the overnight session, but these moves were easily stopped at the first swing area that came their way. Ahead, the European market has a light calendar, but traders are preparing for the Retail Sales and the Unemployment Claims releases at 8:30 EST from the U.S.
The Euro (Eur/Usd) rose approximately 80 pips during the first part of the overnight session, testing the 1.4050 area. The same area acted as an important swing point in the previous day of trading, on Wednesday. As expected, the light volume from the Asian session made the euro fail the test at the 1.4050 area and retrace almost completely the gains seen earlier in the day.
The Pound (Gbp/Usd) gained around 80 pips during the overnight trading session, but the pair did not make any important moves that held. Moreover, the pound’s volume was lower on Thursday morning than seen in previous trading days, something that may act as a drag on the pound during the rest of the session.
The Aussie (Aud/Usd) gained as much as 100 pips during the Asian session, up to TheLFB R1 (0.8110), helped by a released which showed that the Australian economy lost only 1.7K jobs in May, even though the market expected a 30K loss. During the European trading hours, the aussie entered in a 25-pip range, struggling to break above TheLFB R1. Yesterday, the aussie formed a reversal pin-bar formation on the daily chart.
The Cad (Usd/Cad) declined 50 pips during the firs part of the overnight session, but since then the pair traded flat. The cad developed a 30-pip range just below the neutral pivot point (1.1065) throughout the early European session, but this range was also extended after the London open.
The Swissy (Usd/Chf) had a strong correlation with the euro during the overnight session, practically mirroring every move the single-currency made. The pair lost 60 pips during the Asian session, but as the market headed towards the London open, the swissy reversed every pip lost earlier. For now, the swissy trades near the Thursday’s opening price, and just above the 1.0800 swing area.
The Yen (Usd/Yen) seems again unable to break anywhere decisively. Over the last three days, the pair traded in a 120-pip wide range, moving one day up, the other down. During Thursday’s trading session, the yen lost approximately 50 pips, to re-test the 50-day moving average. During the Asian session, a release showed that the Japanese economy contracted 3.8% in the first quarter, less than initially reported.
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