Asian Session Forex Recap – Sept. 23, 2016

  • Japan’s flash manufacturing PMI up from 49.5 to 50.2 vs. 49.3 expected
  • Japan’s all industries activity index up by 0.3% vs. 0.2% expected, 1.0% previous

Dollar domination was the name of the game during the Asian session, as a lack of market-moving reports inspired forex traders to bank on this week’s economic themes.

Major Events:

Dollar domination – Remember that the Fed’s decision to hold off from raising its rates in September inspired a bout of risk appetite during yesterday’s Asian session trading. But with not a lot of data on the docket and Japanese traders back from a holiday, traders mostly took profits from those trades, which then led to gains for the dollar across the board.

Jawboning from Japanese officials – Look who’s getting back in the game! Japanese officials are back to their jawboning ways, as Chief Cabinet Secretary Yoshihide Suga hit the newswires earlier today.

In a news conference, Suga warned that they’re “concerned” over the recent moves in the currency market, and that that they “will be ready to take necessary action” should such moves persist. This comes on top of Economy Minister Nobuteri Ishihara also telling reporters that he wants to closely watch the yen’s moves and analyze its impact.

Unfortunately for yen bulls, the intervention scare worked for about an hour or two before yen crosses resumed their downtrends. Better luck next time, Japanese officials!

Major Market Movers:

USD – The dollar gained pips across the board as traders took profits from their high-yielding investments ahead of the weekend.

EUR/USD is down by 7 pips (-0.06%) to 1.1199, GBP/USD is down by 33 pips (-0.25%) to 1.3039, AUD/USD is down by 6 pips (-0.08%) to .7633, and NZD/USD is down by 29 pips (-0.40%) to .7276.

JPY – The yen lost a couple of pips following threats of currency intervention from Japanese officials, but soon got back its legs an hour or two after the interviews.

USD/JPY popped up to a high of 101.25 before closing at 101.17 (+0.38%), EUR/JPY shot up to 113.45 before finishing the session at 113.29 (+0.31%), and GBP/JPY hit 132.25 before closing at 131.91 (+0.12%).

Watch Out For:

  • 7:00 am GMT: French flash manufacturing PMI (48.4 expected, 48.3 previous)
  • 7:00 am GMT: French flash services PMI (52.0 expected, 52.3 previous)
  • 7:30 am GMT: German flash manufacturing PMI (53.2 expected, 53.6 previous)
  • 7:30 am GMT: German flash services PMI (52.2 expected, 51.7 previous)
  • 8:00 am GMT: Euro Zone flash manufacturing PMI (51.5 expected, 51.7 previous)
  • 8:00 am GMT: Euro Zone flash services PMI expected to remain at 52.8

See also:

U.S. Session Recap
London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!