May 5: American Session
Tatiana Norkina, analyst at FBS
Optimistic data on business activity in the U.S. over the past month has supported the U.S. dollar index today, which has managed to keep over the 79.50 support. Stock markets, on the contrary, have started the week with a significant gapdown but are trying to make up the losses at the moment. Thus, DJIA is losing slightly less than in the morning - around 0.32%, S&P500 - 0.12%.
Currency markets are consolidating after the Friday's rally. The EUR/USD pair has beed trading under 1.3880 all day long, while GBP/USD - in the 1.6860 area.
The range of trading for the USD/CHF pair has reached only 10 pips today: 0.8765-0.8775. At the moment, the bulls are trying to break forward. The USD/JPY pair has set a new low for the past two weeks, dropping to the 101.85 mark, but oversaleness are preventing the bears from winning total control over the market.