U.S. Session Recap – August 4, 2014

  • US non-farm payrolls: 209K vs. 230K expected and 298K last June
  • US unemployment rate: 6.2% vs. 6.1% expected and previous
  • US core PCE price index: 0.1% vs. 0.1% expected and 0.2% previous
  • US personal income: 0.4% as expected and similar to last month
  • US personal spending: 0.4% vs. 0.4% expected and 0.3% previous
  • US UoM consumer sentiment revised lower from 81.3 to 81.1
  • US ISM manufacturing PMI up to 57.1 vs. 56.0 expected and 55.3 last month

What a bloodbath for the Greenback! The dollar failed to finish the week on a strong note after the big NFP report inspired profit-taking among the dollar bulls.

Last Friday Uncle Sam’s employment numbers surprised to the downside. Not only did non-farm payrolls disappoint expectations at 209,000, but unemployment rate had also ticked higher from 6.1% to 6.2%. On top of that, average weekly earnings stagnated instead of rising by 0.2% as many had predicted.

While some analysts had expected a pullback from the previous months’ strong readings, it was enough to inspire profit-taking among the dollar bulls. If you recall, the Greenback had been killing its counterparts for days leading up to the NFP report thanks to NFP speculations and a bit of risk aversion.

EUR/USD shot up to the 1.3440 area before closing the session 23 pips higher than its open price while USD/CHF fell below .9050 before a decent manufacturing PMI report boosted it back to .9062. Meanwhile, USD/JPY plunged by 50 pips to 102.47 at the NFP report’s release but soon found support at the level and closed at 102.59. The pound wasn’t as lucky with the UK’s weak manufacturing PMI fresh on the investors’ minds. GBP/USD only tipped at 1.6862 before ending the US trading session near its intraday lows.

The comdolls also had a great day against the Greenback. Thanks in part to positive manufacturing reports from China, AUD/USD climbed 29 pips to .9312, USD/CAD touched an intraday low at 1.0885 before closing with a 4-pip session loss, and NZD/USD popped up by 30 pips to .8505.

Today’s a busy day for the comdolls with Austrlaia’s MI inflation gauge and retail sales on tap. The reports released a few minutes ago revealed that both reports printed higher than their previous readings. Will these mean more gains for the Aussie and the Kiwi? Keep your eyes glued to the tube for more updates, folks!

See also:

London Session Recap

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