U.S. Session Recap – Sept. 3, 2014

  • NZD drops as global dairy trade price index falls by 6%
  • GBP continues to take hits on possibility of Scottish independence
  • US Markit final manufacturing PMI: 57.9 vs. 58.0 expected and 58.0 previous
  • US ISM manufacturing PMI rockets to 10-year high of 59.0 vs. 57.0 expected and 57.1 reading in July
  • US IBD/TIPP economic optimism: 45.2 vs. 45.5 expected and 44.5 previous
  • BRC shop price index: -1.6 vs. -2.0 expected and -1.9 previous

Forex traders from the U.S. and Canada were back in the game and yesterday’s price action surely showed it!

Dollar bulls went back to action during the US forex trading session as they priced in a couple of dollar bullish reports. For starters, a surge in orders for plastics and metals boosted Uncle Sam’s ISM manufacturing PMI to 59.0, its fastest pace in three years and its highest reading since March 2011.

The IBD/TIPP economic optimism report also contributed to the good vibes with a 45.2 reading, up from its previous 44.5 figure. Not surprisingly, all the optimism boosted 10-year Treasury yields throughout the session.

USD/JPY steadily climbed by 23 pips to 105.14, above the 105.00 psychological handle that many had been watching. Meanwhile, uncertainty over the ECB’s upcoming policy statement kept the euro’s losses in check with EUR/USD inching 13 pips to 1.3129 and USD/CHF slipping by 11 pips to .9195.

The pound’s price action was more pronounced, as it continued to take hits from the possibility of Scottish independence. Word in the hood is that the “Yes” votes are gaining ground against the “No” votes.

GBP/USD ended the session at 1.6472, 60 pips below its open price. EUR/GBP also shot up by 31 pips to .7971 while GBP/JPY slipped by 24 pips to 173.19.

The Kiwi was also one of the biggest movers thanks to another disappointing dairy auction. As it turned out, Russian sanctions put pressure on dairy prices, enough to drag it by 42.2% lower than its prices this time around last year. Yikes!

NZD/USD slipped by 15 pips to .8316, GBP/NZD plunged by 35 pips to 1.9809, and EUR/NZD shot up by 46 pips to 1.5790.

Today’s another big day for comdoll traders with Australia due to print its GDP report at 1:30 am GMT. Analysts are expecting quarterly growth to slow from 1.1% to 0.4%. China is also set to release its HSBC services PMI at 1:00 am GMT. The last release puts the index reading right at the 50.0 expansionary mark, so make sure you’re around in case we see surprises that might influence price action during the Asian forex trading session!

See also:

London Session Recap

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