U.S. Session Recap – May 15, 2014

  • U.S. headline PPI: 0.6% vs. 0.2% forecast, 0.5% previous
  • U.S. core PPI: 0.5% vs. 0.2% forecast, 0.6% previous

Price action quieted down in the U.S. session with little for forex traders to go on other than U.S. PPI data.  The PPI numbers did come in better-than-expectations which provided a boost to the Greenback, but it was short lived as volatility declined and directional bias was influence by broad risk sentiment.  U.S. equities felt downward pressure on the day, which kept high-yield currency bulls at bay.

The big movers on the session were the British Pound, down after disappointing wage data and rate hike speculation rebalancing, as well as the Japanese Yen after positive corporate inflation and machine tools orders data.

GBP/USD closed the session down -0.32% to 1.6770, USD/JPY down -0.42% to 101.85, and GBP/JPY down -0.73% to 170.82

We just got a better-than-expected Japanese GDP data on the calendar. The initial reaction was choppy and leaning more towards yen bullishness, but it’s still too early to tell. We may not see a big reaction until the London session open.

The rest of the Asia session economic data cupboard is light with only Australian new motor vehicle sales at 2:30 am GMT and a Japanese consumer confidence read at 6:00 am GMT.  Bank of Japan Governor Kuroda will be giving as speech at 5:25 am GMT.  It’s not expected to move the markets, but as with any comments from a central bank head, it’s definitely something to watch out for.

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. 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!