U.S. Session Forex Recap – Oct. 22, 2014

  • US existing home sales: 5.17M vs. 5.10M expected, 5.05M last month
  • CAD bounces on risk taking and oil price action
  • AU’s Westpac MI leading index and quarterly inflation both printed same figures as previous readings

The lack of economic reports didn’t stop forex traders from having a good time, as they priced in a mix of dollar and risk appetite.

The Loonie led the biggest forex gainers thanks to a small recovery in oil prices and a not-so-disappointing Chinese GDP report printed during the Asian session.

USD/CAD slipped by 23 pips to 1.1228 while CAD/JPY jumped by 30 pips to 95.22, AUD/CAD fell by 57 pips to .9859 and EUR/CAD dropped by a ridiculous 102 pips to 1.4276. Yowza!

Greenback bulls also got busy during the session as they priced in improvements in U.S. equities. Of course, it didn’t hurt that the possibility of more stimulus from the ECB pushed some yield hunters back to U.S. Treasury bonds. USD/JPY might have only risen by 11 pips to 106.90, but USD/CHF saw a 43-pip jump to .9490, AUD/USD fell back to its Asian session lows at .8781, and NZD/USD declined by 34 pips to .7958.

Meanwhile, the euro continued to suffer from rumors that the ECB is considering buying corporate bonds. EUR/USD fell by another 63 pips to 1.2716, EUR/JPY slid by 51 pips to 135.94, and EUR/GBP saw another 18-pip dip to .7891.

Let’s see if commodity-related currencies can bring their mojo back today. With Australia releasing its MI leading index and quarterly inflation reports, the Aussie will likely be in focus for Asian session traders.

Consumer prices in the Land Down Under showed a 0.5% growth for Q3 2014, which is higher than the 0.4% uptick expected but still in line with the previous quarter’s reading. The report is barely causing ripples across Aussie pairs for now, but keep your eyes peeled in case we see delayed reaction from comdoll traders!

See also:

London Session Recap

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