Overall, currency pairs have been quite during the Asian session, with a slight lean toward dollar weakness continuing the trend seen during yesterday’s U.S. session. Currency pairs will probably in tight ranges until the European session gets underway and economic reports are released.
The Pound (Gbp/Usd) traded flat during the Asian session and enters the European session trying to hold above 1.8350. Movement in the pair will be limited until 02:00 when the Nationwide house price index is released. Economic releases related to the housing market in the U.K. typically cause a volatile reaction. The pair dropped approximately 40 pips yesterday as there still seems to be no down side support for the pair.
The Aussie (Aud/Usd) is starting to show of strengthening, as the Australian dollar benefits from gold prices appreciating. The pair gained a modest 30 pips yesterday but has continued to strengthen during the Asian session adding 70 pips and breaking above the 0.8650 level and yesterday’s high.
The Cad (Usd/Cad) has moved lower during the Asian session adding to 2 days of overall lower movements. The Canadian dollar is strengthening as oil prices start to move higher on speculation oil rigs in the Gulf of Mexico will have be evacuated in the face of the latest tropical storm which is predicted to become a strong hurricane. The pair has dropped about 20 pips since the start of the Asian session.The Swissy (Usd/Chf) As the dollar weakens in the broad market, the swissy, which is a good indicator of dollar strength/weakness, has dropped 35 pips since the new trading day began. A break below 1.0900 could see a move to the next support level at 1.0840, just above the 20 day simple moving average. Switzerland will release employment data
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