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Overall, the currency market moved most of the time in-line with the S&P futures on Monday. The dollar strengthened across the board in the early part of the day, but as the market was heading towards the open of the U.S. market, the majors together with the S&P futures started heading higher. Currently, the major pairs are trading above the break-even line, or very close to it, something that may suggest the market has seen enough dollar strength for the day.
The Euro (Eur/Usd) fell 60 pips during the first part of the overnight session, but from there until the middle of the European session, the euro traded mostly side-ways. Soon after, the euro started retracing the declines seen earlier, and even gained 30 more pips.
The Pound (Gbp/Usd) continues to trade near the resistance area of the range it developed over the last two weeks, something that may suggest the pair is building up volume and momentum for an upside breakout. During the U.S. session, the pound traded almost exclusively near the 1.6570 resistance area, after it moved somewhere lower earlier in the day.
The Aussie (Aud/Usd) lost approximately 100-pips during the Asian session, being the worst performing currency at that time of the day. Shortly after the London open, the aussie started once again to head higher, and managed to retrace every pip lost earlier in the day by the middle of the U.S. session. For now, the aussie is trading near the 0.8080 area, where it also topped on Friday.
The Cad (Usd/Cad) continued to trade side-ways on Monday, even though crude oil had one of the best days of the last few months. Historical, the cad is linked to crude oil, but this relationship started to weaken over the last week. Moreover, the cad is unable to develop a solid trend for about a week, as it swings around the 1.5500.
The Swissy (Usd/Chf) advanced as much as 100-pips throughout the overnight session, but the pair started reversing throughout the second half of the European session. By the middle of the U.S. session, the market retraced every pip gained earlier in the day, trading once again near the 20-day moving average.
The Yen (Usd/Yen) traded on strong momentum throughout the second part of the day, even though the overnight session was in fact a slow moving one. Throughout the U.S. session, the yen gained 80 pips, something that made the pair reach the trend-line that connects the 06.19 and the 06.25 highs.
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