Overall, the currency market saw very small volume coming into the Asian session. Additionally, the U.S. session also moved slower than usual, as the market prepares for the last trading day of the week. The European session is running light, as well as the U.S. calendar, which lacks major releases. However, the market is likely to see some sudden moves, as the earnings season continues.
The Euro (Eur/Usd) opened the Asian session below the 20-day moving average, the support area from the last period of trade. Previously, on Thursday, the euro dropped 45 pips, as the market remained focused on risk-aversion.
The Pound (Gbp/Usd) sold off and dropped 60 pips on Thursday, after the pair reached the highest value since January 12. The pound advanced strongly during the early part of the overnight session, but the move was quickly reversed during the European trading hours, reflecting the negative U.S. Futures. In the Asian session, the pair fell 20 pips.
The Aussie (Aud/Usd) declined and lost 80 pips on Thursday, paring a similar gain experienced a day before, on Wednesday. The aussie was sold during the last day of trading, after China reported a weaker than expected GDP growth in Q1. This shows theoretically that the demand for commodities is likely to remain low, thus weakening Australia’s export market.
The Cad (Usd/Cad) rose on Thursday for the first time in the last eight days, as the greenback strengthened against the major currencies. Most of the time the cad traded on very weak momentum, which was reflected in the pair’s intra-day behavior.
The Swissy (Usd/Chf) struggled to break above the 20-day moving average on Thursday. However, the pair broke through the resistance area during the Asian trading hours, as the pair gained 40 pips. During Friday’s European session, forecasts project retail sales to drop 0.2% in February.
The Yen (Usd/Yen) formed a long legged doji-star in the last day of trading, on Thursday. The yen sold off during the early part of the overnight session, dropping 90 pips, but the move was quickly reversed during the remainder of trade. In the Asian session, the yen gained 20 pips.