Asian Session Forex Recap – Dec. 7, 2015

Forex volatility was tight during the Asian session, as a lack of market catalysts inspired traders to simply price in last Friday’s events.

Major Events:

Lack of market catalysts – Thanks to a lack of major reports on deck, the majors barely moved from their weekly open prices. The dollar did get a few pips in, mostly due to last Friday’s strong NFP numbers inspiring more Fed rate hike bets. If you recall, Uncle Sam printed upward revisions to October’s figures as well as improvements in hourly earnings on top of better-than-expected headline NFP numbers.

Comdoll weaknesses – Oil is heading for its 2015 lows after the Organization of the Petroleum Exporting Countries (OPEC) decided last Friday not to cut its output levels despite falling oil prices. Not surprisingly, the oil-related Loonie showed weaknesses during the Asian session. What is surprising is that other comdolls like the Aussie and Kiwi followed suit despite an uptick in gold prices.

Major Currency Movers:

USD – Though you can barely see it, the Greenback gained a few more pips against the other major currencies. EUR/USD and GBP/USD both slipped by 10 pips while USD/JPY inched 6 pips higher and USD/CHF rose by 12 pips.

CAD – The oil-related Loonie was an exception from today’s tight volatility as oil prices took the comdoll down with it. USD/CAD is up by 25 pips (+0.18%), CAD/JPY is down by 11 pips (-0.12%), and GBP/CAD is down by 23 pips (-0.11%).

AUD and NZD
– Gold prices inched higher during the Asian session but the Aussie and Kiwi both failed to find support. One possible explanation is continued Greenback strength and traders possibly pricing in an RBNZ interest rate cut later this week.

AUD/USD is down by 8 pips (-0.11%) and while NZD/USD is down by 64 pips (-0.68%) at the same time when NZD/JPY is down by 53 pips (-0.64%).

Watch Out For:

  • 7:00 am GMT: German industrial production (0.7% expected vs. -1.1% previous)
  • 7:00 am GMT: U.K. Halifax house price index (0.3% expected vs. 1.1% previous)
  • 9:30 am GMT: Euro Zone Sentix investor confidence

See more:

U.S. Session Forex Recap

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