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Overall, the dollar index gained 13 basis points during the Asian session, as the major currencies moved lower compared to the greenback. During the late U.S. session, the major currencies surged higher, but these moves started to look unsustainable shortly afterwards, as they came on light volume and momentum. Moreover, these moves were not supported by the global markets, something that has caused the fx market to pullback. Ahead, the European calendar has a very light calendar, which might be reflected in the market’s behavior.
The Euro (Eur/Usd) tested the 1.4150 area during the late U.S. session, but the move came on light volume, something that made the pair bounce off very strongly from the resistance area. As such, the euro lost approximately 50 pips during the Asian session.
The Pound (Gbp/Usd) declined 70 pips during the Asian session, as the dollar index moved higher. The pair is now trading slightly above the 20-day moving average, exactly in the same area where the pound bottomed on Thursday. On Friday morning, the pound does not have any economic reports scheduled for release.
The Aussie (Aud/Usd) posted strong gains during the late U.S. session, something that helped the pair establish a new high for the day. However, soon after the pair started moving lower at a very fast pace, shedding almost 90 pips from the high reached earlier.
The Cad (Usd/Cad) had again very weak momentum throughout the first part of the overnight session, following the same pattern as in the last few days of trading. So far this week, the cad declined close to 450 pips, making it the biggest weekly drop since mid-May.
The Swissy (Usd/Chf) advanced as much as 30 pips since the Asian session begun, trading within the range of the prior day. On the daily chart, the swissy has been trading roughly within the same range over the last few weeks, something that denotes the market’s uncertainty.
The Yen (Usd/Yen) bounced from the neutral pivot point during the Asian session, and declined some 30 pips lower. For now, the pair is still trading above the 93.50 area, which has acted as an important price point over the course of the last few weeks of trading.
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