A Flat European Session | ForexGen

Overall, the currency pairs were flat during the European session, with only the yen (Usd/Jpy) able to break lower. The U.S. session will be closed today, as is Canada, so it's very likely the market will continue to move flat.

The Euro (Eur/Usd) tested TheLFB S1 during the overnight session but was unable to break lower. An economic release showed the manufacturing side of the economy contracted in the Euro-area for a third month in a row, reflecting the weak state the economy. Later this week, the ECB will announce its interest rate decision.

The Pound (Gbp/Usd) declined 150 pips during the overnight sessions as the U.K. economy may be facing the biggest downturn seen in decades. The pair is trading just under TheLFB S2, and expecting the Manufacturing PMI release which is very likely to show the sector contracted for a fourth month in a row.

The Aussie (Aud/Usd) fell 50 pips soon after the new trading week had started, however, did manage to stabilize. During the European session, the pair hovered around the neutral pivot point after a release showed the Australian current account was worse than expected.

The Cad (Usd/Cad) advanced during the Asian session, but just before the European session started, liquidity dried up and the pair flat lined. In the last 3 days, the cad has advanced more than 200 pips due to a release that pointed out the Canadian economy expanded less than forecast.

The Swissy (Usd/Chf) gained 80 pips during the Asian session, testing the high of the previous day. However, the pair reversed and now the swissy is trading virtually unchanged. During the European session, a release showed Swiss industry is still expanding despite the global slowdown, although less than analysts had predicted

The Yen (Usd/Yen) continued to weaken during the European session, falling almost 80 pips, of which 45 pips came from the gap at the Asian session open. during the Asian session, the pair was unable to break TheLFB S1, but managed to do so during the European session. currently, the pair is trading just above TheLFB S2.