U.S. Session Recap – Sept. 1, 2014

  • CA annualized Q2 2014 GDP up by 3.1% vs. 2.7% expected, 0.9% previous
  • US core PCE price index: 0.1% as expected and previous
  • US personal income: 0.2% vs. 0.3% expected, 0.5% previous
  • US personal spending -0.1% vs. 0.2% expected, 0.4% previous
  • US Chicago PMI: 64.3 vs. 56.5 expected, 52.6 previous
  • US revised UoM consumer sentiment: 82.5 vs. 80.0 expected, 79.2 previous

Looking for countertrends at the end of the month? Think again! The dollar started the US forex trading session on a weak note against its counterparts, but soon recovered after the London session close.

EUR/USD fell victim to weak euro zone reports and finished the day at 1.3140 after finding resistance at the 1.3190 area. GBP/USD popped up to an intraday high of 1.6614 on end-of-month profit-taking, but soon closed at 1.6603 when dollar bulls got their second wind.

Better-than-expected Chicago PMI numbers and upward revisions to the UoM consumer sentiment data also pushed USD/JPY and USD/CHF higher. The former closed firmly above 104.00 and the latter jumped by 37 pips to .9181.

The Loonie also provided interesting forex price action after Canada printed its Q2 2014 GDP numbers. The report at its highest since Q3 2011, and suggested that the economy is bouncing back from the impact of harsh weather conditions at the beginning of the year. This is probably why USD/CAD hit an intraday low of 1.0811 and CAD/JPY had popped to a high of 96.10 before capping the day near their open prices.

We have a busy NFP week ahead of us and China’s manufacturing PMI numbers might have fired the first salvo. Data from China came in at an index reading of 51.1, a bit weaker than the expected 51.2 reading and last month’s 51.7 figure. Major comdoll pairs have barely reacted to the news, but keep your eyes peeled for Asian session currency traders who could price it in later!

See also:

London Session Recap

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