Overall, the currency market looks has had a serious lack of momentum in the European session. The majors tried initially to break higher during the late Asian session, but this proved to be unattainable since almost every major is near an important swing point. Looking ahead, the market may be able to pick up momentum with the release of important U.S. economic releases, including PPI data.

The Euro (Eur/Usd) is struggling to hold above the neutral pivot point (1.2965) in the overnight session. The pair had some feeble breakout attempts during the Asian session, but the 20-day simple moving average proved to be too much for the market at that time of the day. During the European session, the euro traded mostly flat.

The Pound (Gbp/Usd) tried to move higher during the Asian session, but gave up to all of its gains during the European trading hours. Additionally, the pound is trading slightly under the 20-day simple moving average, an area that may prove hard to take out.

The Aussie (Aud/Usd) has had no clear direction since the new trading day started. The aussie is now trading caught between the 50 and the 100 day simple moving averages, both being important swing points in the past. Most likely, the aussie will not be able to pull a breakout on its own and will need help from the dollar, equity markets. Gold, or a combination of all three.

The Cad (Usd/Cad) traded mostly sideways in the Asian and European trading hours. The pair swung around the 20-day simple moving average tonight, after in the last two days the cad struggled and failed to break and hold below this support level. Additionally, the cad is trading near a 4-hour support line that has held since January.

The Swissy (Usd/Chf) traded in an 80-pip range during the overnight session, but still the swissy was unable to develop any decent, sustainable trends. The pair rose 60 pips during the late Asian session, but started to lose ground as the market was heading towards the London open. Currently, the swissy is trading near the Asian open price.

Industrial production in Switzerland rose by 0.1%, beating market expectations. The previous reports showed the released number can be volatile, and very often deviates from the expected number. However, from one year earlier, industrial production in Switzerland fell 5.9%.

The Yen (Usd/Yen) had a very strong overnight session, unlike the last day of trading. The pair tried initially to break higher during the Asian session, but the lack of liquidity stopped the pair from moving higher. However, during the late Asian trading hours, the yen surged higher, breaking above the high of the last three days of trading.

Japans Tertiary Industry Activity Index increased 0.4 percent month over month in January. This was against analysts expectations for a 0.5 percent drop. Sectors that contributed to the increase in the index were postal services, information and communications, learning support, health care and welfare, and real estate. Meanwhile, these sectors declined for the month, transportation and the finance and insurance services.