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Overall, the majors lacked a clear direction during the overnight session, but all this had changed as the market headed into the U.S. open. Initially, the dollar index moved higher, but then the market turned around, sending the dollar index lower, once again. However, despite the trends seen during the U.S. session, the major pairs are still trading within the range of the last few trading sessions, something that does not allow the market to build strong momentum in order to break higher.
The Euro (Eur/Usd) lacked a clear direction throughout the first part of the day, as the pair moved sideways. During the U.S. open, the euro gave some signs that it wanted to break lower, but then, the pair turned around, creating a new high for the current day.
The Pound (Gbp/Usd) sold off at a strong pace during the overnight session, but then found the strength to turn around and recover every pip lost earlier, during the second part of the day. During the European session, the BoE minutes were released, showing that the bank sees the economic activity in 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 a mixed overnight session, in which the pair lacked a clear direction or trend. However, the aussie started moving lower as the market headed towards the U.S. open, but shortly after it reached the 0.8100 area, the pair surged higher once again, reaching the highest value over the last month of trading.
The Cad (Usd/Cad) fell as much as 100 pips during the U.S. trading hours, dragged lower by the positive S&P futures. Helped by today’s declines, the cad tested the low touched on Tuesday, and at the same time, the 1.0950 support area, which holds the pair since early June.
The Swissy (Usd/Chf) moved similar to the euro on Wednesday, practically copying each move the single-currency made. The swissy had a 30-pip range during the overnight session, but the pair managed to move lower during the U.S. trading hours, reaching the lowest value it touched so far this year.
The Yen (Usd/Yen) fell down to TheLFB S1 (93.15) during the overnight session, but helped by the U.S. open, the yen recovered much of the ground lost earlier in the day. On the daily chart, the yen is trading below the important moving averages.
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