U.S. Session Forex Recap – Oct. 6, 2014

  • US non-farm payrolls prints at 248,000 vs. 215K expected, 180K previous
  • US unemployment rate down to 5.9% from 6.1% last month
  • US y/y average hourly earnings down to 2.0% vs. 2.2% expected
  • US trade balance shows 40.1 billion USD deficit, lower than 40.8 billion USD deficit expected
  • CA merchandise trade data shows 0.6 billion CAD deficit vs. 2.2 billion deficit last month
  • US ISM non-manufacturing PMI down to 58.6 vs. 58.5 expected, 59.6 previous

And the dollar takes it again! Thanks to a strong NFP reading, the Greenback was king of the forex arena in last Friday’s U.S. session.

It was a pretty straightforward forex trading session with the dollar raking in serious pips against its major counterparts. Not only did the non-farm payrolls report leave market expectations in the dust with a 248,000 reading, but Uncle Sam’s unemployment rate also hit its lowest since 2008. For forex newbies out there, the numbers simply supported market speculations that the Fed could raise its interest rates in early 2015.

EUR/USD dropped by 104 pips to 1.2511, GBP/USD fell by 100 pips to 1.5975, USD/JPY rocketed to a hair’s breadth away from the 110.00 handle, and USD/CHF broke above .9600 and finished the day at .9675.

Dollar bulls also didn’t discriminate against the comdolls. AUD/USD suffered an 80-pip decline to .8674 and NZD/USD also saw a 91-pip slide to .7769. The Loonie, which found no support from a worse-than-expected trade balance report, also fell by 74 pips against the dollar with USD/CAD reaching 1.1258.

Will the dollar continue to dominate the forex markets this week? Australian and Chinese markets are out on banking holidays today, so we might not see much volatility in the Aussie.

Australia’s MI inflation gauge and ANZ job ads report have just been printed though, with the former coming in at 0.1% vs. 0.0% previous reading and the latter printing at 0.9%, down from 1.6% last month. These reports don’t usually cause sustained intraday movements among Aussie pairs, so watch out for other catalysts that might move the major currencies today.

Good luck and good trading this week!

See also:

London Session Recap

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