U.S. Session Forex Recap – Mar. 2, 2015

  • US preliminary quarterly GDP: 2.2% vs. 2.0% expected, 2.6% previous
  • US core PCE (2nd reading): 1.1% as expected and previous
  • US Chicago PMI: 45.8 vs. 58.0 expected, 59.4 previous
  • US pending home sales: 1.7% vs. 2.0% expected, -1.5% previous
  • US UoM consumer sentiment: 95.4 vs. 94.0 expected, 93.6 previous
  • PBoC cut its interest rates over the weekend
  • China manufacturing PMI: 49.9 vs. 49.7 expected, 49.8 previous
  • China non-manufacturing PMI: 53.9 vs. 53.7 previous
  • AU MI inflation data and new home sales as well as China’s HSBC final manufacturing PMI on tap

There was no clear direction among major currencies last Friday, as forex investors closed shop for the week and the month.

The managed to gain some pips after Uncle Sam released a couple of reports. The downward revision of the GDP from 2.6% to 2.2% could have weighed on the Greenback if market players hadn’t already expected a 2.0% reading. It also helped that the biggest drag on the data was the loss in inventories, which could be good for manufacturers. Meanwhile, the disappointing Chicago PMI (lowest since 2009!) was mostly canceled out by an upside surprise in the UoM consumer sentiment report.

EUR/USD slipped by 44 pips (-0.39%) to 1.1191, GBPUSD was almost unchanged at 1.5438, USD/JPY gained another 33 pips (+0.28%) to 119.64, and USD/CHF rose by 61 pips (+0.64%) to .9535.

The comdolls also lost a couple of pips to the dollar even though oil prices capped the week slightly above $50 per barrel and gold prices jumped to a one-week high. One possible reason is that some traders are taking off their comdoll bets ahead of this week’s major events.

AUD/USD gave up 15 pips (-0.19%) to .7815, USD/CAD inched 29 pips higher (+0.23%) to 1.2501, and NZD/USD was unchanged at the .7560 area.

Today’s the start of a brand new trading month and major reports are already waiting for forex traders. Commodity-related currencies are starting the week on a weak note after China released its PMI reports and the People’s Bank of China (PBoC) cut its interest rates over the weekend.

Aside from the PBoC’s news, traders could price in Australia’s MI inflation and new home sales reports at 1:00 am GMT, as well as China’s HSBC manufacturing PMI at 2:45 am GMT. Significantly weaker-than-expected reports could dictate risk sentiment at the start of the week, so make sure you keep close tabs on your open trades and potential setups!

See also:

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!