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Overall, the dollar index saw a day of strong declines on Thursday, in which it lost approximately 60 ticks, or 0.70%. The dollar was sent lower from the first few minutes of trading, around the Asian open. During the European session, the major currencies retained the positive momentum, and continued to advance compared to the greenback. Ahead, traders will focus on the BoE interest rate decision, which might prove to be crucial, having the power to send the currency market back into a risk-aversion mode, or not. Most likely, the BoE interest rate decision and the S&P futures will be the main hubs during the U.S. session, since the economic calendar is relatively light. 

The Euro (Eur/Usd) stair-stepped higher compared to the dollar on Thursday, gaining approximately 100 pips. The pair bounced off the 50-day moving average during the early trading session, something that pulled the pair higher during the Asian session. Shortly after the London open, the pair resumed its upward momentum, which helped it reach TheLFB R2 (1.3985) 

The Pound (Gbp/Usd) surged 150 pips on Thursday, being the day’s top performer so far. The pound moved higher during the overnight session, ahead of the interest rate decision coming from the Bank of England. Most market participants expect the central bank to maintain the interest rate at 0.50%, while increasing the size of the asset buying program.

The Aussie (Aud/Usd) traded on a relatively light volume and momentum throughout the overnight session, but this still has not stopped the aussie from moving higher. Currently, the pair is testing the 0.7850 area and at the same time the 50-day moving average, two important price points over the last few periods of trade.

The Cad (Usd/Cad) lost approximately 80 pips during the Asian and the European trading hours, moving together with the other major currencies for the first time over the last few trading sessions. For now, the cad is approaching the trend-line that connects the Jun 24 09 and the Jul 07 07 lows, an area that some investor might use to mark some part of their profits.

The Swissy (Usd/Chf) moved lower during the overnight session, falling nearly 70 pips. Moreover, the pair managed to break below the range of the last few trading session during the European session, something that shows that the market is determined to send this pair, and possibly then the dollar index, lower. 

The Yen (Usd/Yen) gained approximately 90 pips throughout the Asian session, but since then, the pair has entered into a side-ways range, between the high reached during the Asian session and the neutral pivot point (93.10). In order to move anywhere higher, the yen would have first to break above the 93.50 resistance area on increasing volume. 

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