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Overall, the S&P futures plunged nearly 1% during the overnight session, but the currency market failed to follow the move lower. The only exception was the pound, for a second consecutive day, which plunged more than 100 pips ahead of the BoE minutes. Overnight, the market looked suspiciously reluctant to buy the dollar, a pattern that has been seen a number of times over the last few weeks. As such, traders should look to sell the dollar as the global equity markets turn around, something that might create some very strong upside trends in the currency market.

The Euro (Eur/Usd) struggled to find a direction to move in. The euro appeared as it wants to move higher, but the break-out attempt failed as the pair lacked the support of the S&P futures market. Interesting enough, the euro lost only 30 pips in early trade, even though the S&P futures plunged nearly 1%, which suggests that the market is happy with the pair’s valuation.

The Pound (Gbp/Usd) for a second consecutive day, the pound was the worst performer among the major currencies during the overnight session. The pair dropped 130 pips, being able to find a reliable support near the 1.6320 area. During the European session, the BoE minutes were released, which showed that the bank sees the economic activity in a better shape going into the second part of the year, but still the recovery will be long and slow. Regarding the asset purchase program, the bank has not seen any indications that its size should be increased.

The Aussie (Aud/Usd) had an approximate 20-pip range up and down around the neutral pivot point (0.8150), as the pair appeared reluctant to follow the S&P futures lower. Interesting enough, during the last U.S. session, the aussie had a very strong reaction to the S&P futures rally during the late trading hours, something that suggests the market might not be happy selling this pair. 

The Cad (Usd/Cad) traded again on lower momentum reads during the overnight session, as happens most of the time, but still, the pair gained 50 pips. Currently, the cad is testing the 1.1090 area, which was an important intra-day price point over the last few trading sessions. 

The Swissy (Usd/Chf) had a few attempts to break the upside range of the last few trading sessions, but so far, the pair failed to pull the move off. Moreover, swissy and the whole forex market seem reluctant to move higher against the dollar, even though the global markets appear to be in a risk-aversion phase. 

The Yen (Usd/Yen) spent the overnight session trading below the neutral pivot point (93.75), in a 30-pip range. During the European session, the yen started moving lower, dragged by the declining S&P futures. On the daily chart, the yen is trading below the important moving averages.

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