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Overall, the gains posted throughout the U.S. session helped the currency market advance against the dollar. The greenback’s weakness came from equity markets breaking the range of the last few days of trading, and from the crude oil’s market, as oil reached a new eight-month high. Both the equity and the commodity markets point to a higher degree of risk-tolerance among institutional investors, something that usually sends the dollar lower.
The Euro (Eur/Usd) had a relative weak overnight session, but saw a lot of movement during the U.S. trading hours, as the euro gained 220 pips from the session’s low to its high. Despite this, the pair failed to break decisively above the 1.4100 resistance area, which acted as a swing point in the past.
The Pound (Gbp/Usd) strengthened for the forth-consecutive day on Thursday, as some investors are considering that the U.K. housing market has bottomed. Moreover, since the low had been set during the late U.S. session on Wednesday, the pound headed only higher, gaining as much as 400 pips. Most of these gains came during Thursday’s trading hours. The next major resistance for the pound to take out is the 1.6650 area.
The Aussie (Aud/Usd) had a very strong trading day on Thursday, being the day’s top performer in percentage terms among the major pairs. The aussie rose as much as 220 pips, but just before the closing bell the pair retraced parts of the ground gained earlier. The aussie re-tested the 0.8200 area on Thursday, where it topped at the beginning of June.
The Cad (Usd/Cad) had a relative flat European session on Thursday, but fell down to the 1.0950 support level throughout the U.S. trading hours. From there, the cad bounced again higher to finish the day 70 pips lower, and pared every gain made on Wednesday
The Swissy (Usd/Chf) continued to mirror the euro’s movement on Thursday. The pair tried to move lower during the Asian and the European sessions, but still the swissy failed to find sufficient momentum to pull the move. Throughout the U.S. trading hours the swissy declined as much as 200 pips from the session’s high, but retraced some parts of the move before the closing bell
The Yen (Usd/Yen) posted strong declines during the last U.S. session, on Thursday, after it traded without any momentum during the overnight session. At the end of the day, the yen declined 60 pips and closed just above the 50-day moving average. During the Asian session, the yen tried again to break under the support level, but so far, has failed to do so.
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