The European currencies took the Usd for a ride on Thursday as Eur and Gbp followed the lead set by Chf in finding buyers in a fashion not seen in quite a while. The switch from near-term weak reads on Eur and Gbp overnight was dramatic and coincided with news that European inter-bank liquidity needed to be covered, which was also aided by positive E.U. bond sales.

By the time U.S. cash markets absorbed horrendous reads on employment, housing and factory-gate inflation, the Usd damage had been done. The exceptions to the moves were Aud and Cad, as both currencies co-mingled weak Usd sentiment with big drops in global commodity market trade that weighed on valuations.

Aussie and cad are both setting up short-Usd near-term signals, and a bounce in global commodity trade overnight seems all that will be required to see 0.8550 and 1.0500 in play on Friday. Usd/Jpy lost ground as speculative interest abandoned the interest-rate impacted pair, and there looks to be very little that can be done to reverse the downdraft, outside of a daily-chart close above 88.50 that will signal long interest.

Traders will be looking for a pullback on euro to buy 1.2450, and 1.5100 on cable. Swissy offers good value for money on a long punt off the 200-day SMA at 1.0610, but ahead of the Friday non-farm payroll, things may just consolidate the High Frequency breakout on Thursday.

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