Currency Pair Overview Market Awaiting The U.S. Open

Overall, the currency market has once again sold the dollar in the overnight session, reversing movements seen during the latter part of Monday’s U.S. session, and traders are now waiting for the U.S. open to see if the movements continue. Except for the cad, every major currency advanced against the greenback. The real test now comes near the U.S. open, when futures trades come into play and usually have the tendency to reverse direction

The Euro (EUR/USD) has already risen 200 pips in the overnight session, paring the declines seen one day earlier, when the pair formed a bearish pin-bar. From the beginning of the year, the euro has lost a little less than 400 pips, or 3%.

The M3 number hit the wires at 7.8% much lower than what analysts had previously estimated. The number for the month of October was left unrevised at 8.7%. The Euro area M3 was expanding at a very strong pace in the last few quarters, but it seems now the pace of growth is starting to slow. The number of Private Loans in the Euro-zone rose by 7.1% from one year earlier, also under the foretasted number, reflecting the tougher credit conditions.

The Pound (GBP/USD) is posting gains for the first time in the last nine days. The pair advanced 100 pips overnight, and is now struggling to break above the neutral pivot point (1.4525). Yesterday, the pound reached the lowest point in the last 6 years, as the market expects the U.K. economic situation to worsen.

The Aussie (AUD/USD) rose 60 pips in the Asian session, but retraced a portion of the move. During the European session, the aussie started to move higher again, and is now testing the same area where it topped earlier, at 0.6925. Currently, the pair is trading below the 100 and 200-daily moving averages.

The Cad (USD/CAD) produced some very strong swings during the overnight sessions. First, in the Asian session, the cad fell nearly 80 pips, below the neutral pivot point (1.2170). Soon after the London open, the pair surged 180 pips higher, in rapid time, breaking above the 1.2220 resistance area. For the moment, the cad is testing the area formed by the 20 and the 50-day moving averages.

The Swissy (USD/CHF) fell 60 pips in the Asian session, near the neutral pivot point (1.0540) and has since moved in tandem with that price point. Yesterday, the swissy formed a bullish pin-bar, suggesting the market might see some upside price movement.

The Swiss Consumption Indicator was released at 0.96, for the month of November. This is the lowest read in the last 3 years. The release shows that Swiss consumption is slowing, while the outlook is turning worse. Last month’s number of 1.32 left revised slightly lower, to 1.30.

The Yen (Usd/Yen) declined again during the overnight market, even though S&P futures are pointing to a positive start on Wall Street. In the early Asian trading hours, the yen attempted to break higher, but failed to follow through with the move. For the moment, the yen is testing the 90.00 area, which has previously acted as a support level.