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Overall, the dollar lost a few points during the first part of the session, but during European trade the whole currency market started moving side-ways. The only exception was the pound, which shed every pip gained earlier in the day throughout the European session. Ahead, the market is expected to retain a weak momentum ahead of the closed U.S. session. Few pairs have been able to move anywhere decisively this week.
The Euro (Eur/Usd) advanced up to the neutral pivot point during the overnight session, but since then has practically came to a standstill, having a 10-pip side-ways channel. On Thursday, the ECB held its interest rate at 1%, the lowest in the banks’ short history.
The Pound (Gbp/Usd) is currently trading at the week’s lows, even though earlier in the day it advanced as much as 90 pips. Over the last few days of trading, the poor outlook of the U.K. economy seems to have affected the pound; it was the worst performer among the major pairs. The pound’s decline throughout the overnight session came even though the U.K. PMI report showed that the service side of the economy expanded for a second consecutive month in June.
The Aussie (Aud/Usd) rose almost 100-pips throughout the Asian and the European sessions, but the pair came to a halt after the European cash markets opened. The aussie’s outlook lies to the upside, as Australia is the only major economy that has not entered into a recession so far.
The Cad (Usd/Cad) traded on bullish sentiment on Friday, even though oil declined strongly in the last three days of trade. The pair appeared resilient to the dollar’s strength, even after the London open when the rest of the major pairs retraced some parts of the recent moves. In order to move lower, the cad needs first to break below the 1.1575 area, a very important swing point over the last two weeks of trading.
The Swissy (Usd/Chf) declined as much as 70 pips during the first part of the overnight session, testing the 20-day moving average, but soon after, the swissy turned around and retraced a few pips. The next major resistance for the swissy seems to be the 1.0900 area.
The Yen (Usd/Yen) moved up and down during the overnight session, in a 35-pip range, limited by the 96.05 area, and by the low touched on Thursday. The pair is now trading right near the 200-day moving average, something that might act as an important swing point next week.
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