Overall, the greenback posted strong gains even from the Sunday session. The move was inline with the U.S. futures, which posted some very strong declines for this time of the night. The release calendar is very light today, so U.S. futures may remain a very good guide throughout the trading session for the dollar’s direction, as it has been the case lately.
The Euro (Eur/Usd) moved lower tonight for the first time in the last five days of trading. The euro lost 70 pips during the Sunday session, dragging the majors lower against the greenback. This week, the Euro-area has a number of reports scheduled on daily, but none of them are expected to move the currency market.
The Pound (Gbp/Usd) is re-testing the low reached on Friday, after it declined 70 pips tonight. Additionally, some argued that the BoE intervened in the currency market throughout last week in order to maintain the pound’s value. A number of foreign ministers have recently complained about the pound’s decline.
The Aussie (Aud/Usd) declined almost 90 pips during the Sunday session. For now, the pair holds above the 20-day moving average, but the outlook lies on the downside, as the market expects the RBA to keep cutting rates in the medium term.
The Cad (Usd/Cad) gained 40 pips tonight, after it declined more than 300 pips in the last two days of trading. The cad’s decline comes, as the dollar seems gain ground across the market, while crude oil lost almost a dollar tonight. Except for Thursday, the cad’s calendar is empty this week.
The Swissy (Usd/Chf) moved on strong volume since the Sunday session started, and re-tested the 200-day moving average creating a strong area of support. In the early hours of trading, the swissy bounced 70 pips higher.
The Yen (Usd/Yen) opened the Sunday session with a 30-pip gap. Last Friday, the yen broke below the trend-line and the 50-day moving average that it has held since mid-January.