Overall, the currency market effectively came to a standstill during the late U.S. session and in the early part of the Asian session. Most likely, the market will continue to move on a weak momentum during the last trading day of the week, same as how it has been happening recently. Additionally, the calendar is clear of any important releases during the European session, which does not help too much either.
The Euro (Eur/Usd) reached the highest level since January 9, helped the by the Fed’s decision to intervene in the currency market. In the last two days of trading, the euro gained 620 pips, from which 160 were gained yesterday. During the Asian session, the euro dropped 30 pips.
The Pound (Gbp/Usd) wanted to break lower during the last overnight session, but eventually the market pulled the pair higher. From there, the pound broke above the 50-day moving average and gained more than 200 pips until the end of the day. The pound starts the Asian session trading flat and under the 100-day moving average.
The Aussie (Aud/Usd) seems to be in a real rally lately, as the pair strengthened for eight consecutive days. In addition, the aussie managed to break above the 0.6840 area yesterday, where it topped before in January and February. The pair traded flat during the Asian session.
The Cad (Usd/Cad) dropped 300 pips during the last overnight session, but recovered almost every lost pip during the U.S. session. As such, the pair formed a bullish pin bar yesterday, after it moved lower for six consecutive days. The cad starts the Asian session trading once again trapped between the 50 and the 100-day moving averages.
The Swissy (Usd/Chf) fell 550 pips in the last two days of trading, much more than it moved in the last few months, taken together. Only yesterday, the yen fell 240 pips in the overnight session, but had to retrace some of the lost ground as the pair hit the 200-day moving average. In the Asian session, the swissy traded flat.
The Yen (Usd/Yen) declined for a second straight day yesterday. The pair fell as much as 260 pips during the intra-day session, but eventually bottomed near the support area formed by the 50 and the 100-day moving averages. The yen closed the last day of trading some 160 pips lower.