Overall, the market had no real volume or momentum during the overnight session. The majors moved mostly out of inertia, responding to the negative U.S. futures. The dollar and the yen were still the biggest gainers from the overnight session, but the gains were modest. Ahead, the market is expected to pick up during the U.S. open, when a number of important releases are scheduled, including CPI data.
The Euro (Eur/Usd) fell 50 pips during the overnight session, but the pair traded on weak momentum. Additionally, the pair managed to break below a descending triangle formed yesterday, but still the euro was unable to move decisively lower.
The Pound (Gbp/Usd) followed the same pattern of trading as on Tuesday. The pound was unable to move anywhere decisively, and traded on a weak momentum. However, despite the lower expected DCLG HPI numbers the pair strengthened after the release. The 4h chart is a mess with most candles having a small body, but rather long wicks.
The Aussie (Aud/Usd) fell to TheLFB S1 (0.7165) area during the Asian trading hours, but since then the pair moved side-ways. The negative equity markets of the last few trading sessions have had a negative effect on the Australian dollar, since the Australian dollar is susceptible to risk aversion.
The Cad (Usd/Cad) lacked any real momentum during the overnight session. Most of the time, the pair traded side-ways, slightly above the neutral pivot point (1.214%). However, the cad did manage to post its first gains in the last seven days during the overnight session.
The Swissy (Usd/Chf) advanced 60 pips during the overnight session, near TheLFB S1 (1.1440). Additionally, the swissy is trading near the same area where the pair peaked on Tuesday. For the moment, the pair trades between the 20 and the 100-day simple moving averages.
The Yen (Usd/Yen) fell 80 pips during the Asian trading hours, down to TheLFB R1 (98.20), but recovered every pip lost soon after the London open. Overnight, the yen followed the U.S. futures closely. For now, the pair trades trapped between the 20 and the 200-day simple moving averages.