Currency Pair Overview Light European Economic Calendar Sees Majors Move Side-ways

Overall, the light economic calendar during the European and U.S. sessions has taken its toll on the currency market, as the majors failed to move with any significance. However, the currency market was very active during the Asian session, as traders awaited two interest rate decisions. Ahead, the majors are likely to be influenced by moves made in the U.S. futures market.

The Euro (EUR/USD) fell 80 pips in the early part of the Asian session, extending the declines seen one day earlier. Since then, the euro traded side-ways, unable to develop a decent trend. Currently, the euro sits on top of the 20-day simple moving average.  

The Pound (GBP/USD) traded in similar fashion with the euro in the early part of the overnight session, but after the London open, the pound managed to move somewhat higher. Yesterday, the pound bounced from an important swing point, which has held the pair since mid-January.

The U.K. manufacturing output decreased in February by 0.9%, compared with analyst expectations of -1.4%. From one year ago, manufacturing production fell by 13.8%, the biggest yearly drop since 1981. A different report showed that industrial production dropped by 1.0%, less than the forecasted number. From one year ago, industrial output decreased by 12.5%.

The Aussie (AUD/USD) started the European session by posting some small gains, forming a 60-pip candle made during the RBA interest rate announcement. Ahead of the interest rate decision, the aussie declined 60 pips to TheLFB S1 (0.7060), but eventually, the aussie managed to recover this lost ground.

The Cad (USD/CAD) managed to break above the 100-day simple moving average during the Asian session, but these moves were reversed as the market headed towards the European session. Also, during the overnight session, the cad tested the area formed by the 20 and the 50 day simple moving averages.

The Swissy (USD/CHF) struggled in the first few minutes of the Asian session to break above the high of the last two days of trading, something that the pair eventually succeeded in doing but was unable to hold. However, since then the pair has traded in a small range, moving around Tuesday’s session opening price.

The Yen (Usd/Yen) fell rapidly in the early part of the overnight session down to the TheLFB S1 (100.35), but could not push the price anywhere lower. Tonight the yen declined for the fist time in the last three days and for a short period looked like it would pare the gains seen yesterday. During the Asian session, the BoJ announced its new monetary policy, but this has had little effect on the Japanese currency so far.