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Overall, the currency market appeared reluctant to move most of the time, but still, the major currencies managed to post some modest gains that were helped by the U.S. futures today compared to the Usd. The same pattern was seen in the global market on Thursday, as the equity and the futures markets expected the earnings reports coming from the U.S to be good. The only exception was the yen, which moved lower during the first part of the day, but retraced some parts of those declines during the U.S. session.
The Euro (Eur/Usd) moved in a range-bound pattern most of the time, but managed to break above the trend-line that held the pair since the beginning of June during the early U.S. session, helped by the investors’ optimism. The next major resistance the euro will have to face now is the 1.4170 area, and then the pair can run a test at June’s high, near the 1.4300 area.
The Pound (Gbp/Usd) is currently forming a doji-star pattern on the daily chart, as the pair lacked a direction on Thursday.
For the longer term though, the pound could under-perform the other major currencies, as the fundamentals of the U.K. economy appear to be the weakest among the G7 economies.
The Aussie (Aud/Usd) sold off 70 pips during the first part of the day, testing the 20-day moving average, but afterwards, the pair recovered the ground lost earlier as the S&P futures moved higher. Despite this, the aussie was still not able to break above the 0.8050 area, the same place it topped on Wednesday.
The Cad (Usd/Cad) advanced as much as 80 pips during the Asian session, but since then the pair has only traded side-ways. Over the last three days of trading the cad has experienced a very weak Asian session, but saw strong momentum throughout the European and U.S. sessions. Today, it was exactly the other way around.
The Swissy (Usd/Chf) moved up and down around the 1.0750 area on Thursday, as the foreign exchange market lacked a solid direction. Over the last few weeks of trading, the swissy appeared reluctant to develop and sustain a trend, something that was reflected in the pair’s behavior.
The Yen (Usd/Yen) headed lower on Thursday, even though the S&P futures moved higher during the second part of the day. The yen fell 60 pips, reaching TheLFB S1 93.50 swing point area. On the daily chart, the yen is trading below all the important moving averages.
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