Overall, the market lacked any momentum in the European session. The majors traded in the tight channel developed in the first minutes after the Sunday open, unable to break decisively in either direction. Today was the first time in a long period when the London open did not have a strong effect over the market. The majors still have to close the gaps from the weekend trading.

The calendar is free of any releases during both the European and the U.S. sessions, and this certainly affected the trading session. Now traders wait for the U.S. session, however, since today is a holiday in the U.S. activity may be stifled.

The Euro (Eur/Usd) fell 30 pips in the Asian session, and tested TheLFB S2 (1.2750) support area. The pair was unable to choose a direction to trade overnight, as it lacked any guidance. If it breaks lower, below the 1.2750 level, the euro will touch the lowest value in the last two and a half months.

The Pound (Gbp/Usd) saw a 140-pip gap lower at the Sunday open, by far the biggest among the majors, which pulled the pair below the 20-day moving average. On Friday, the pound bounced off the 50-day moving average, forming a bearish pin-bar. During the European session, the pair has traded in a 100 pip channel.

The Rightmove house price index for the month increased to 1.2 percent, month over month. The average price advertised by sellers in February has fallen by the most since 2002, with a decline of 9.1 percent. In London the fall was 3.5 percent while mortgage approvals were close to decade long lows in December. However, asking prices have risen 1.2 percent month over month while in London prices grew by 0.3 percent.

The Aussie (Aud/Usd) trades between two important swing points, the 0.6500 support area and the 20-day simple moving average. The pair moved very little tonight, following the pattern of the last few days of trading, when it formed consecutive doji-stars.

The Cad (Usd/Cad) moved in a 25-pip range, below TheLFB R1 (1.2450), unable to break anywhere. In the last four trading days, the cad has opened and closed exactly in the same area, suggesting that the market is unable to move in a solid direction.  

The Swissy (Usd/Chf) was the only pair that was able to move higher during the early part of the European session. The pair advanced near TheLFB R1 (1.1655) in the Asian session, where the high of Friday is, and managed to break higher shortly after the European open. In the last two days of trading, the swissy formed two consecutives doji-stars.

The Yen (Usd/Yen) traded in a 30-pip range in the Asian session and in the early part of the European session, just above the neutral pivot point (91.50). However, the yen managed to break higher around the middle of the European session, but the moves continued to remain strained.

Japanese growth contracted by 3.3 percent during the fourth quarter, which was below market expectations for a 3.1 percent decrease. This is the third month that the GDP has contracted in the worlds second largest economy as it falls further into a recession. Meanwhile, the third quarter was revised to 0.6 percent from 0.5 percent.