Currency Pair Overview Majors Advance In The Asian Session

Overall, the currency market saw the dollar losing ground during the Asian session. This has been the trend in the last few days, as the equity markets advanced at a sustainable pace. This shows that investors are looking for quality rather than safety. Ahead, the European calendar is heavily loaded, something that will certainly affect the currency market.

The Euro (EUR/USD) had a very weak overnight session, but managed to move somewhere lower during the U.S. Session. In the last period, the euro was unable to develop a trend, as the pair traded in a 200-pip range on the daily chart. This happens, after last week the euro had its biggest gains on record compared with the dollar.

The Pound (GBP/USD) bounced off the 100-day moving average, and dropped for a second consecutive day. The pair fell around 90 pips, having most of the declines during the late European session/U.S. open. In the Asian session, the pound rose 30 pips, after it tested the 1.4450 area.

The Aussie (AUD/USD) was unable to trend in a defined direction in the last period, similar to the euro. Yesterday, the aussie had probably the weakest momentum from the last few weeks, as the pair moved only 60 pips. During the U.S. session, the aussie developed a 20 pips range, which apparently was extended in the Asian session.

The Cad (USD/CAD) formed a doji-star for a third day in a row yesterday. This shows that the pair is unable to develop a decent trade, and only trades around important swing points. Yesterday, the pair had only a 100 pips range from the high of the session to the low, but most of the time the cad was trapped in a 30-pip channel. In the Asian session, the cad fell 30 pips.

The Swissy (USD/CHF) failed to break under the 200-day moving average for the sixth consecutive day. However, the pair continues to trade within defined support and resistance areas during the intra-day session, and very volatile. During the Asian session, the swissy fell 30 pips.

The Yen (Usd/Yen) advanced yesterday 135 pips, and broke above a 4h trend-line that held the pair since the beginning of March. Moreover, the yen re-tested the 99.00 resistance area yesterday, but failed to break any higher. During the Asian session, the yen fell 50 pips.

Retail sales in Japan have declined again in February by the most in the past seven years. Sales decline 5.8 percent on the month from one year ago. This was after dropping 2.4 percent the previous month. Japans consumer prices have fallen to a flat 0.0 percent reading in February. This is the second time in over a year that consumer prices have not risen as a result of the eminent recession that is entering the country. A drop in exports has forced corporations across Japan to cut workers and lower hours and pay, which in turn leaves less for consumers to spend.