Overall, the currency market moved sideways during the Asian and the European trading hours. The only important event that will happen during the European session, with a chance to move the market, is the BoE interest rate decision. Other than that, trade desks are preparing for an extended weekend for the Easter Holiday, so momentum is likely to remain low.
The Euro (Eur/Usd) had a 90-pip range during the overnight session, but this has still not helped the pair move anywhere decisively. The London open found the pair struggling to break above the high of the previous day of trading, but until now the euro has failed to make the move.
The German CPI fell by 0.1% in March, in-line with the preliminary release. Last month, in February, the German CPI rose by 0.6%.
The Pound (Gbp/Usd) advanced on small volume during the early part of the overnight trading session. However, the pound experienced a surge in volume and momentum during the European trading hours, as the market is preparing for the BoE’s interest rate decision.
The U.K. deficit shrunk in February to £7.3 billion, less than market expected. The previous number was revised higher from a deficit of £7.7 billion to £7.8 billion. Factory prices increased for a third consecutive month, after plunging lower for six months. The input prices, or the price at which producers and manufacturers buy materials and fuel, rose in March by 1.0%, much more than expected. The output price, or the prices at which manufacturers sell, gained 0.1% for a third consecutive month
The Aussie (Aud/Usd) moved relatively volatile since the Thursday session started, but the pair was unable to break decisively in either direction. During the Asian session, the pair headed lower, but those declines were reversed as the market headed towards the European session. Soon after the London open, the aussie started again to retrace the move made earlier.
The unemployment rate in Australia increased by 0.5 percent to 5.7 percent in February which is higher than analysts’ forecasts of an increase to 5.4 percent. The number of unemployed increased by 28.5K to 460,400.
The Cad (Usd/Cad) fell 60 pips during the overnight session, but the pair appears again to be moving out of inertia. In the last two days, the cad formed two consecutive doji-star patterns, which denotes the market’s indecision. The pair is trading just above the 1.2300 level and momentum continues to be to the downside.
The Swissy (Usd/Chf) attempted to break higher in the early part of overnight session, but the London open reversed the moves and saw the pair plunging some 70 pips lower. Currently, the swissy is trading trapped between the 20 and the 100-day simple moving averages
In March, unemployment in Switzerland remained at 3.3%, as expected. In unadjusted terms, the Swiss unemployment held steady at 3.4% in March, from 3.3% in the period before. Previously the unemployment rate had remained stable for a longer period, near 2.5%.
The Yen (Usd/Yen) moved very little last night as the market, in general, lacked any real momentum. However, today the yen advanced for the first time in the last three days, helped by the positive equity markets and by the government’s plan to introduce a new stimulus package.