U.S. Session Recap – Sept. 11, 2014

  • SNB reiterates the possibility of negative rates, boosts CHF
  • GBP gets support from hawkish BOE, “NO” votes ground in latest Scottish independence surveys
  • RBNZ keeps interest rates at 3.5%, signals longer rate pause

Currency bulls and bears got busy during the U.S. forex trading session, as they priced in a couple of market-moving reports.

First up is Swiss National Bank (SNB) official Moser, who reiterated that negative interest rates is always a possibility for the central bank. Since this would essentially put a tax on holding francs, it wasn’t surprising to see EUR/CHF shoot up by 46 pips to 1.2129 before closing back at 1.2099.

Still in the European region, the pound found support across the board after a poll by Survation in Glasgow put the “NO” votes ahead of the Scottish referendum battle at 53% versus the 47% of the “YES” votes. GBP/USD shot up by 88 pips to 1.6213 throughout the session, while GBP/JPY jumped by 115 pips to 173.15 and EUR/GBP dropped by 54 pips to .7966.

The dollar was also one of the biggest movers, as forex traders price in possibly hawkish statements from the Fed in next week’s FOMC meeting. Word around the hood is that the Fed is looking to move away from keeping rates low without causing exaggerated reactions from the markets.

USD/CHF led the rally with a 32-pip pop to .9368, but USD/JPY wasn’t far behind with another 16-pip rise to 106.80.

Will we see more volatile forex price action today? It’s promising to be a busy session for comdoll bulls and bears, with major reports from New Zealand, Australia, and China scheduled today. The RBNZ fired the first salvo with its latest monetary policy decision. The central bank kept its rates at 3.50%, but hinted at a longer wait before another rate hike. Not surprisingly, NZD/USD lost a couple of pips at the news.

Australia is up next with its employment numbers. As Forex Gump stated in his forex trading guide, market players are looking for a net increase of 15,200 jobs and for unemployment rate to drop to 6.3%. Last but definitely not the least, we’re also expecting China’s inflation report at 1:30 am GMT. Consumer prices are generally expected to weaken from last month, but keep your eyes peeled in case we see surprises!

See also:

London Session Recap

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