U.S. Session Recap – July 2, 2014

  • US final manufacturing PMI: 57.3 vs. 57.5 expected and previous
  • US ISM manufacturing PMI: 55.3 vs. 55.9 expected and 55.4 previous
  • US IBD/TIPP economic optimism: 45.6 vs. 48.0 expected and 47.7 previous
  • US Treasury yields rises by 5 basis points to 2.57%
  • Dow and S&P 500 hit record highs

It’s not even the 4th of July and we’ve already seen fireworks! Yesterday investors had greeted a new trading quarter by pushing the major currencies all over the charts.

The dollar came out as the biggest loser despite the Dow and S&P 500 hitting record highs and the U.S. Treasury yields jumping to its highest since last Tuesday. One possible reason is that financial planners had loaded up on their high-yielding positions at the beginning of a new trading quarter. Another possible reason is that they’re not expecting this week’s NFP report to make any dent on the Fed’s current tapering schedule.

EUR/USD stayed just below the 1.3700 handle and USD/JPY was capped at 101.50 but GBP/USD rocketed to 1.7167, AUD/USD jumped 44 pips to .9496, USD/CAD slipped by another 26 pips to 1.0633, and NZD/USD snuck in another 12 pips to .8772.

While the dollar was sliding down the charts, the pound was enjoying a nice boost. Thanks to a positive UK manufacturing PMI report, the pound bulls found it easy to reinforce the upside technical breaks in some major pound pairs.

Aside from Cable breaking above 1.7100, GBP/JPY had also ventured above the 174.00 territory. Even EUR/GBP slipped by another 8 pips to .7975 throughout the US forex trading session while GBP/CHF jumped by 18 pips to 1.5224.

Will forex price action be as exciting in today’s Asian session trading? Australia is set to print its trade balance data at 1:30 am GMT and word on the hood is that we’re about to see a weaker reading than last month. Keep your eyes on your comdoll trades in case we see any surprises from this report!

See also:

London Session Recap

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