Overall, the currency market saw mixed action in the Asian session. This can be considered as a normal consequence, since the previous day of trading was very volatile. Most likely, the market will wait for the European session until it finds direction., The economic calendar remains light ahead.
The Euro (Eur/Usd) sold off sharply in the previous day of trading, as risk-aversion returned to the currency market. The euro plunged 225 pips, posting the biggest drop out of the majors. Furthermore, in only one day of trading, the euro managed to give back every pip gained in the previous week of trading.
The Pound (Gbp/Usd) dropped a small number of pips during Monday’s trading session. The pound traded trapped between the 20 and the 100-day moving averages, which should have supported the pound’s value. Additionally, the pound managed for a short period to actually trade above Sunday’s open price, something that the other majors failed to do.
The Aussie (Aud/Usd) plunged at a sustainable rate in the early part of the overnight session, took a breath of air during the European session, but resumed the declines during the late U.S. session. Moreover, the aussie continued to decline during tonight’s Asian trading hours, falling another 35 pips.
The Cad (Usd/Cad) was not able to develop a decent trend, as the other majors did in the last day of trading. The cad picked up 85 pips, with most of the gains happening in a short period of time. In the Asian session, the cad tried to break to the downside.
The Swissy (Usd/Chf) rose strongly during Monday’s trading hours, reversing some parts of the declines seen in the previous days of trading. During its upward movement, the swissy broke the 20, 50 and the 100-day simple moving averages, but topped near the 1.6000 swing area. In the Asian session, the swissy traded flat.
The Yen (Usd/Yen) struggled to break below the 96.55 area during the Monday trading session., Currently, the pair trades near a one-month low, as the currency market was driven by risk, strengthening the Japanese yen.