- Australia’s NAB quarterly business confidence up to 4 vs. 1 last month
Profit-taking was the name of the forex game, as the Greenback recovered a few pips after being heavily sold off during the U.S. session.
USD recovery – The Greenback was able to recover some pips against its counterparts after being sold like there’s no tomorrow during the U.S. session. As I mentioned in my recap, poor service sector activity, as well as a dovish remark from a Fed member, diminished chances of further Fed rate hikes in the near future and eventually weighed on dollar demand.
Rally in commodity prices – The comdolls had no mercy for the Greenback though, especially after commodity prices saw rallies during the Asian session. One possible reason for the rally is the increased chances of OPEC members meeting to address oil’s falling prices, while gold prices climbed on the back of weakened demand for the dollar.
Gold is up by 0.18%, Brent oil Is up by 0.83% to $35.40, and WTI crude oil prices is up by 0.90% to $32.63.
Waiting game ahead of the BOE’s “Super Thursday” – Despite the catalysts above, price mostly remained in Rangeville ahead of the BOE’s “Super Thursday” event. As Forex Gump mentioned in his trading guide, the Bank of England (BOE) is set to release its inflation report, monetary policy decision, and meeting minutes. BOE head honcho Mark Carney will even hold a press conference after the events!
With not much economic report to play with and increased volatility in the horizon, it makes sense that Asian session forex traders had held off from committing to positions today.
Major Currency Movers:
USD – Major dollar prices reflected the Greenback’s slight recovery. USD/JPY is up by 26 pips (+0.22%), EUR/USD inched 5 pips (-0.05%) lower, and GBP/USD slipped by 27 pips (-0.19%).
Comdolls – The commodity-related currencies mostly tracked gains against the Greenback. AUD/USD recovered most of its intraday losses after meeting a technical resistance, but USD/CAD fell by another 22 pips (-0.16%) and NZD/USD capped the session above the .6650 handle.
- 6:45 am GMT: SECO consumer climate (expected at -15 vs. -18 previous)
- 8:00 am GMT: ECB’s Draghi to make a speech in Frankfurt. Watch out for more jawboning!
- 8:30 am GMT: U.K. Halifax house price index (estimated at 0.2% vs. 1.7% previous)
- 9:00 am GMT: ECB economic bulletin
- 12:00 pm GMT: BOE Super Thursday. Read Forex Gump’s trading guide to see what you can expect from the BOE’s inflation report, monetary policy decision, and Carney’s press conference.
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!