Overall, the market moved without any real volumes or momentum yesterday. Most of the majors traded within the range of the previous days, unable to have a strong follow-through. The only exception was the Japanese Yen, which was probably influenced by tonight’s BoJ meeting. In the Asian session, the market lacked any strong momentum again, extending the slump seen just one day before.
The Euro (Eur/Usd) closed lower for a second consecutive day, posting some small declines. However, the euro pared every lost pip tonight, in the Asian session. Also yesterday, the euro reached the lowest value since 20th of November.
The Pound (Gbp/Usd) failed for the fourth consecutive day to break above the 20-day moving average. The pound tumbled 150 pips shortly after the European open, in a time when the market barely moved. However, after the BoE minutes went public, the pound retraced the move almost completely. In the Asian session, the pound rose 45 pips.
The Aussie (Aud/Usd) closed the last day of trading posting a very small gain of only 30 pips. In fact, the aussie traded on a very weak momentum, moving only 90 pips all-day long and struggling to take out the neutral pivot point (0.6405). In the Asian session, the aussie rose 40 pips and tested the resistance area of the last day of trading.
The Cad (Usd/Cad) traded with poor momentum, probably affected by the declines in the crude oil market. At the end of the day, the cad declined 40 pips, even though during the U.S. open, the pair fell much more than that. In the Asian session, the cad fell another 30 pips, testing the range seen in the U.S. session.
The Swissy (Usd/Chf) broke the high of the last day of trading, but failed to close above it. The pair gained 55 pips by the end of the day, from which most of the move came during the European trading session. In the Asian session, the swissy fell 30 pips.
The Yen (Usd/Yen) gained a strong number of pips in the last day of trading, even though, the S&P futures finished the day mixed. The yen rose 130 pips, and reached the highest value in the last 5 weeks, yesterday. Some suggest that the yen’s appreciation from the last few days was triggered by the BoJ intervention.