Overall, the currency market closed the Thursday trading session mixed compared to the dollar, as investors absorbed the latest fundamentals. The euro and the pound strengthened, the swissy traded flat, while the pound, cad and the yen lost some ground against the greenback over the last day of trading. Ahead, the release calendar holds one more important news item that is likely to influence the market significantly, the Non-Farm Payroll. As such, the majors traded mostly side-ways during the Asian session, preparing for the upcoming trading day.
The Euro (Eur/Usd) saw a very volatile day of trading on Thursday, as Mr. Trichet said the current interest rates are appropriate and reflect the existing data. After the statement was issued the euro retraced 90-pips in just a few minutes, and then advanced 100 pips, near the 200-day moving average. In the Asian session, the euro declined 30 pips.
The Pound (Gbp/Usd) fell yesterday for the first time in the last eight days of trading. The pound saw downside action even from the beginning of the Thursday session, but the pair’s real decline came only after the BoE’s interest rate statement. In particular, it seems that the decision to expand the asset-buying program weakened the British currency.
The Aussie (Aud/Usd) was the only pair that managed to post some decent gains during the overnight session on Thursday. In the last period of trading, the aussie was pulled higher by positive reports coming from the Australian economy, which so far seems suggegst a recovery phase. During the Asian session, the aussie traded side-ways.
The Cad (Usd/Cad) the cad traded on weak volume in the previous day of trading, on Thursday, but despite this, the pair reached a new low for the last few months of trading. In the last period, the Canadian dollar was pulled higher by the gains seen in the crude oil market, but this was not the case in the previous day of trading. In the Asian session, the cad also traded side-ways.
The Swissy (Usd/Chf) closed yet another day of trading forming a doji star on Thursday. Over the last few days of trading, the swissy traded only in a 100-pip range, unable to break anywhere decisively as it seems the SNB is preparing again to intervene in the currency market.
The Yen (Usd/Yen) bounced very strongly off of the support area formed by the 20, 50 and the 200-day moving averages on Thursday, something that helped the yen rise almost 100 pips during the intra-trading session. During tonight’s Asian session, the yen traded side-ways slightly above the 99.00 level.