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Overall, the currency market continued to move uncorrelated during the Asian session, as some of the majors strengthened against the dollar, while others declined. Throughout the European session, the currency markets started to move higher against the greenback, as the S&P futures headed towards the 945.00 swing area. However, the moves made after the London open were restrained, as the currency market prepares for the Non-farm Payroll release.
The Euro (Eur/Usd) tried, briefly, to break above the 1.4225 area, where the euro peaked on Thursday. However, the move was easily rejected, even though the S&P futures maintained their upside momentum. Yesterday, the ECB maintained the policy rate at 1%, the lowest on the bank’s short history.
The Pound (Gbp/Usd) fell 140 pips during the overnight session, expanding the decline observed over the last few days of trading. The pound’s weakness comes as some suggest the U.K.’s triple-A rating may be again at risk, following the country’s political tensions.
The Aussie (Aud/Usd) gained some 50 pips throughout the European session, even though the pair moved very sluggishly. On the daily chart, the aussie formed a doji-star pattern yesterday, which usually denotes the market’s uncertainty.
The Cad (Usd/Cad) saw very thin volume during the early part of the overnight session, similar to the pattern observed over the last few days of trading. Throughout the European session, the pair’s momentum increased significantly, but still the cad was unable to break any important price points.
The Swissy (Usd/Chf) extended the range seen in the second part of the day on Thursday, during the overnight session. In the European session, the swissy had a small attempt to break higher, but the move was easily rejected from the neutral pivot point (1.0700). Yesterday, the swissy formed a doji-star pattern.
The Yen (Usd/Yen) traded in a 30-pip range during the overnight session, near the high reached on Thursday. For now, the yen trades just below the 200-day simple moving average, which will certainly require strong momentum from the pair to break higher.
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