- BOC monetary policy statement boosts CAD
- US factory orders up by 10.5% vs. 11.0% expected and 1.5% previous growth
- US Beige Book report shows “moderate to modest” growth in 10/12 regions
- BOJ monetary policy statement, AU retail sales and trade data on tap
The dollar gained ground against the European currencies but lost pips to the yen, franc, and the comdolls, as traders turn cautious ahead of today’s major economic events.
EUR/USD retreated from its 1.3161 intraday high and capped the day at 1.3147 while GBP/USD dropped to an intraday low at 1.6440 before closing at 1.6461.
The dollar wasn’t as lucky with its other forex counterparts. Yesterday factory orders printed a record gain of 10.5% increase in July on strong demand for aircraft and autos. The Fed’s Beige Book report also should have provided support for the dollar when it showed that 10 out of 12 watched regions had showed “moderate to modest” growth.
Unfortunately for dollar bulls, USD/JPY still dipped by 27 pips to 104.76 while USD/CHF closed at .9178 after hitting a session high at .9193. As it turned out, investors had their eyes on other the other forex factors.
The Bank of Canada (BOC) boosted the Loonie after it printed its monetary policy decision. While the central bank didn’t make changes to its interest rates, its accompanying statement suggested that a rate cut isn’t on the table, at least in the near future. Not only does the BOC believe that its exports are “back on track,” but it was also happy about the US economy gaining traction.
This is probably why USD/CAD closed 18 pips below its session open price after hitting an intraday low at 1.0871. CAD/JPY also jumped to an intraday high of 96.50 while EUR/CAD registered a 20-pip slip to 1.4314.
Let’s see if forex bulls will be out for blood today. At 1:30 am GMT, Australia is slated to print its retail sales and trade balance numbers. Market players are expecting retail sales to grow by 0.4% in July after rising by 0.6% in June. They’re also expecting Australia to print a trade deficit of 1.75 billion AUD, slightly higher than last month’s 1.68 billion AUD reading.
Last but not the least, the Bank of Japan (BOJ) is scheduled to release its monetary policy statements some time in the Asian forex trading session. While analysts aren’t expecting changes to its monetary policies, they will keep their eyes peeled for any speeches that might hint at the BOJ’s biases towards increasing stimulus in the economy. Don’t even think of missing it!
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