U.S. Session Recap – February 6, 2014

  • ADP report shows 175K vs. 185K expected
  • Canadian building permits at slows by 4.1% vs. 2.0% growth expected
  • US ISM non-manufacturing PMI at 54.0 vs. 53.7

Price action was deep in Chopsville yesterday as U.S. session traders refused to commit to a direction ahead of today’s BOE and ECB policy statements. The Greenback weakened a bit after the ADP report was printed. Data revealed that only 175,000 workers were added in January (analysts were expecting 185,000) while December’s report was revised down from 238,000 to 227,000.

Fortunately for the dollar bulls, the US ISM services PMI accelerated to a solid 54.0 when market geeks had expected a 53.7 index reading. At the end of the day the reports didn’t show enough hints about this Friday’s NFP report and they weren’t enough to warrant strong, directional trades.

EUR/USD, GBP/USD, and USD/JPY showed dollar weakness at the ADP data’s release but only USD/JPY reacted significantly to the ISM non-manufacturing report. Meanwhile, the Loonie caught a triple whammy as USD/CAD reacted to a positive US ISM services data, surprisingly weak Canadian building permits, and an intraday support level for the pair.

Only Australia’s retail sales, trade balance, and quarterly business confidence numbers are scheduled for release during the Asian session. The reports mostly came in better-than-expected, which is probably why AUD/USD is on a roll early today. Watch for BOJ Deputy Governor Iwata’s speech at 1:30 am GMT in case we see significant yen moves.

See also:

London Session Recap

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