Overall, the majors saw several medium-size gaps at the Sunday open again. The only pair that was unaffected was the pound, while every other major pair gapped. Ahead, the currency market has a very light schedule, something that might have a negative influence over the majors, especially during the European trading hours.
The Euro (Eur/Usd) saw a 40-pip gap around the Sunday open. This happens, after the euro closed lower for the first time nine days of trading. In addition, last week the pair gained 730 pips, the biggest weekly gain since the euro first took shape, back in 1999.
The Pound (Gbp/Usd) was the only pair that did not gap tonight, and continued to trade mostly side-ways during the Asian session. Lately, the pound was pulled higher by the overall dollar weakness, but the rest of the majors seemed to outperform the pair.
The Aussie (Aud/Usd) saw a 25-pip gap at the Sunday open, something that helped the pair advance, all the way up to the 0.6930 resistance. In the same area, the aussie topped in the last two days of trading. Additionally, if it breaks anywhere higher, the aussie will touch the highest value since early January.
The Cad (Usd/Cad) is trading slightly above the 100-day moving average, on a very weak volume. In the last two days of trading, the cad broke shortly under the support level, but never actually managed to close under it, and formed two consecutive bullish pin-bars.
The Swissy (Usd/Chf) opened above the 200-day moving average, as the pair struggles to break under it for the past two trading days. Last week, the swissy lost more than 600 pips, as the Fed pledged to intervene in the treasury market.
The Yen (Usd/Yen) rose 30 pips after the Sunday open and extended the gains seen on Friday. In the last period, the yen appreciated rapidly as a number of Japanese officials complained about the exchange rate.
The confidence seen in the Japanese manufacturing sector has fallen by the most in at least five years as the global recession produces record declines in factory outputs and exports. The sentiment seen among manufacturers was a -66.0 which is much worse than the expected -47.3 as well as below the previous number of -44.5. Japan is heading towards its worst recession since 1945 which is forcing businesses to cut spending and reduce workforces.