Overall, the last session of trading were marked by huge declines seen in the British pound, which practically dragged the majors lower. The dollar gained across the board yesterday, but the majors made a small comeback during the Asian session. Ahead, both the European and the U.S. sessions are loaded with important releases, so we can expect that market participation will remain high.
The Euro (Eur/Usd) fell 160 pips yesterday and pared the gains seen on Tuesday. The pair started to head lower during the European session, dragged lower by the pound’s huge decline. In the Asian session, the euro tested the neutral pivot point (1.2765) but failed to move any higher.
The Pound (Gbp/Usd) plunged in the last day of trading. The pair fell almost 440 pips from the intra-day high reached during the London open, to the low seen during the U.S. session. Interestingly enough, the pound bounced off the 50-day simple moving average, and every time the pair tested this resistance during the last few months a similar reaction occurred.
The Aussie (Aud/Usd) closed below the 20-day moving average, again, even though the pair was trading above it at the beginning of the day. The aussie fell 70 pips yesterday, with the biggest decline seen during the European session. During the U.S. session, the aussie traded in a tight range, but managed to break higher in the Asian session.
The leading index for Australia has decreased 0.9 percent for the month of December, falling to a reading of 114.1. This is the fourth consecutive decrease for the index. The leading index began its descent in September 2008 and it has only accelerated in recent months as the fall rivals levels seen in early 2001
The Cad (Usd/Cad) bounced off the 20-day simple moving average yesterday, and gained 130 pips. The pair rose for the first time in the last six days, helped by the overall dollar strength. During the overnight session, the cad traded in a wider range, but surged higher during the U.S. open. In tonight’s Asian session, the cad has traded flat.
The Swissy (Usd/Chf) finished the last day of trading gaining 110 pips. Most of the gains came during the European and U.S. sessions, when the pair moved consistently higher. In the last three days of trading, the swissy has the opened and closed around the same price point, denoting the market’s indecision.
The Yen (Usd/Yen) advanced another 70 pips in the last day of trading, even though the S&P futures never went above the breakeven line. During the Asian session, the yen gained 40 pips, and now is testing the high of seen on Wednesday. In the last four days of trading, the yen has risen 450 pips, and reached 3 month high.