Overall, the currency market lacked a clear direction overnight. Most of the time the majors traded flat around the opening bell prices, as the market lacked any serious momentum. Ahead, traders are looking to the U.S. session open, when the financial markets usually experience a surge in momentum and liquidity. Additionally, economic reports may have a strong influence over the currency market during the U.S. session.
The Euro (Eur/Usd) struggled to break decisively in either direction during the overnight session. In the Asian session, the euro gave some signs it wanted to break lower, but the moves were short-lived. Currently, the euro trades near the highest value reached since January.
The Pound (Gbp/Usd) is heading into the U.S. open session virtually flat from the Asian open, caught between the 20 and the 50-day simple moving averages. The pound fell 120 pips during the early part of the new day, but bounced higher from the neutral pivot point (1.4160). During the European session, the pound recovered every pip lost earlier, and is now trading just below the 50-day simple moving average.
In February, the M4 rose by £21.7 billion, or 1.4%, as analysts had predicted. Year over year, the M4 growth rate is standing at 18.8%. M4 lending excluding the effects of securitizations and loan transfers increased by £28.0 billion, seasonally adjusted in February. The twelve-month growth rate rose to 15.3% from 15.1% in January.
The Aussie (Aud/Usd) fell 70 pips during the Asian session, down to the neutral pivot point (0.6725), but the aussie started to recover soon after. For now, the aussie is trading near the Asian open price, and at the same time near a February high.
The Cad (Usd/Cad) started the overnight session caught between the 50 and the 100-day simple moving averages. The pair bounced off the 50-day SMA resistance, fell 50 pips, and broke below the low reached on Wednesday during the overnight session. Tonight, the cad declined for the sixth consecutive day.
The Swissy (Usd/Chf) traded in a 30-pip range during the Asian session, but moved lower after the London open. Currently, the pair is trading near the low of the last day of trading, and near the lowest value touched since late January. This happens, despite the SNB intervening in the currency market in the last few days.
The Zew Indicator for Switzerland, gauging analysts’ economic expectations, remained mostly unchanged in March. However, the indicator for the assessment of the current economic situation in Switzerland continued to worsen in March. The respective indicator drops 11.8 points and also reaches the minus 57.1 mark.
The Swiss trade balance surplus declined again in January. Compared with the estimated number, the trade balance was released lower, 0.73B versus 1.01B. In January, the report was revised slightly lower, to 1.99B.
The Yen (Usd/Yen) was among the few pairs that moved decisively during the overnight session. The pair fell 100 pips during the Asian session, and actually managed to break below Wednesday’s low. Additionally, the pair broke below the low touched on March 12.
The Japanese all industry activity index came in at negative 1.7 percent for the month when compared to the previous month. The index fell less than the expected 2.0 percent economists had expected. The decrease was led by a drop in the industrial production index by 11.3 percent while the services sector increased 0.4 percent.