U.S. Session Forex Recap – Oct. 24, 2014

  • US initial jobless claims: 283K vs. 281K expected, 266K previous
  • US FHFA house price index up by 0.5% vs. 0.3% expected, 0.2% previous
  • US flash manufacturing PMI: 56.2 vs. 57.0 expected, 57.5 previous
  • US leading indicator: 0.8% vs. 0.7% expected, 0.0% previous
  • BOJ sees more risk of inflation dropping below 1%
  • NZ trade balance shows 1.35B NZD deficit vs. 625M deficit expected

Forex bulls and bears saw an active US trading session, thanks to a bit of risk appetite and a news report on the BOJ.

Risk-taking during the London session translated to appetite for U.S. equities during the US trading session. This dragged EUR/USD back from its 1.2677 intraday high back to its 1.2653 closing price while USD/CHF jumped by 13 pips to .9536. GBP/USD also didn’t get any lovin’ with its 5-pip slip to 1.6027.

The Greenback’s performance was also solid against the comdolls. AUD/USD weakened by another 44 pips to .8756 while NZD/USD, still hit by New Zealand’s weak CPI, dropped by 52 pips to .7813. The Loonie showed some strength on an improvement in oil prices, but eventually slipped by 18 pips to 1.1235.

The bigger headliner was a Wall Street Journal article on the BOJ, which hinted that the central bank is looking at falling energy prices, and thinks that it could lead to inflation falling back below 1.0%. If this is the case, then it’s only a matter of time before the central bank considers another round of stimulus. Yikes!

USD/JPY jumped by 52 pips to 108.15 at the news, at the same time when we saw EUR/JPY rise by 48 pips to 136.84 and GBP/JPY rocket by 77 pips to 172.77.

Will the comdolls continue to lose pips today? The only report scheduled during the Asian forex trading session is New Zealand’s trade numbers, which showed a much deeper deficit than market players had expected. Do you think this will translate to comdoll selling for the next couple of hours?

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!