U.S. Session Recap – August 7, 2014

  • US trade balance: 41.5 billion USD deficit vs. 44.8 billion deficit expected and 44.7 billion deficit last month
  • CA trade balance: 1.9 billion CAD surplus vs. 0.58 billion CAD surplus last month
  • UK NIESR GDP estimate: 0.6% vs. 0.8% previous
  • AU employment numbers on tap
  • NZ unemployment rate drops but employment change misses estimates

The dollar lost pips against its counterparts in yesterday’s US forex session trading, as profit-taking got mixed in with a possible “fat finger” incident.

USD/JPY was a particularly noted after it fell by 40 pips in minutes around the middle of the trading session. Market players point to the futures markets, which showed that more than 50K contracts were traded in minutes instead of the usual 5K to 10K units. In any case, USD/JPY was dragged to an intraday low of 101.78 before closing at 102.06.

Possible profit-taking ahead of the BOE and ECB monetary policy decisions also lent support to the euro and the pound. EUR/USD closed with a 37-pip gain to 1.3380 while GBP/USD finished the session with a decent 17-pip ascent to 1.6848 despite of the mixed reports from the early London session trading.

Even comdoll traders hopped on the Greenback-selling bandwagon. Thanks to speculations of a strong Australian jobs report, rising gold prices, and a better-than-expected Canadian trade data, the Aussie, Loonie, and Kiwi all gained pips on the dollar. AUD/USD jumped by 44 pips to .9352, USD/CAD plunged by 62 pips to 1.0913, and NZD/USD closed with a 46-pip gain to .8476.

Let’s see if Asian session traders are in the mood to push comdolls higher today. At 1:30 am GMT Australia is set to print its employment numbers. Investors expect a net of 13,500 workers to have found jobs in July, a bit lower than June’s 15,900 net increase. Meanwhile, the unemployment rate is expected to remain at 6.0%.

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!