The net of the overnight session was to see the Usd get stronger, but not in a uniform manner across all currencies, as the European pairs held their ranges, while Aud, Cad, and Jpy broke new ground.
These are now massively overbought Usd markets, but will stay that way so long as global risk markets are going lower. Forex trade right now is all about global equity direction, and that favors the short side of stocks, and the long side of the dollar.
The intra-day volatility remains high, with average trading ranges still holding at historical levels on forex, stocks and commodities, in moves that reflect a lack of leverage and trust between market participants that create very reactive intra-day charts.
Any positive potential that had been seen in the previous session by equity markets being able to hold support, was removed in Thursday trade by the Japanese Nikkei dropping under 10,000 and the German Dax gapping down under 6000.
Both regional market moves allowed the S/P futures traders to drop price action down below 1105. That however was only the start of it, as price decimation hit in waves that dropped an average 2% off global share values.
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