Overall, the European session saw lighter volume, as anticipated, overnight. Apart from the yen, the rest of the majors moved within the range of the last day of trading. The U.S. futures traded side-ways as well, unable to provide the crucial boost that the majors need to break higher. Despite this, the market is expected to gather momentum as it heads towards the U.S. open, but it may be hard to sustain throughout the day.
The Euro (Eur/Usd) advanced 80 pips during the Asian session, but the move reversed easily, shortly after the London open. In the last day of trading, the euro formed a bearish pin-bar, which might set the direction of trade over the next period of trading.
The Pound (Gbp/Usd) saw a 50-pip range during the overnight session, similar to the one experienced during the late U.S. session. Until now, the pound has experienced low momentum during the Friday trading session, even though the U.K. is the only European market open today.
The U.K. Manufacturing PMI rose more than expected for a second consecutive month in April. Despite this, weaker global demand still outweighs any benefit from sterling's fall against major currencies. Net lending to individuals dropped to the lowest level on record in March. The number came in at £0.9B, much lower than what analysts’ expected. “The number released for the month of February was revised higher, to £1.5B
The Aussie (Aud/Usd) gained 50 pips during the overnight session, but the pair still trades within the range of the last day of trading. On the daily chart, the aussie trades above the all the important moving averages, after it recently broke above the 200 SMA.
The Cad (Usd/Cad) re-tested the 1.1870 area during the overnight session, despite the low market volume. The move was easily rejected, forcing the cad to retrace parts of the declines seen during the Friday session. Currently, the cad trades near the lowest value since January 2009.
The Swissy (Usd/Chf) is once again trading above the 200-day simple moving average, after the pair failed to break and hold below on Thursday. Additionally, the swissy formed a pin-bar, which usually denotes a turning point.
The Yen (Usd/Yen) headed higher during the last few days of trading. The upside trend started during Tuesday’s European session, and since then the pair has advanced 370 pips, from which 70 came tonight. Additionally, during tonight’s trading session, the yen broke above the 20-day simple moving average and above the 98.85 swing area.