U.S. Session Forex Recap – Oct. 29, 2014

  • US durable goods orders down by 1.3% in Sept. vs. 0.5% uptick expected, Aug reading also downgraded
  • US core durable goods orders down by 0.2% vs. 0.5% uptick expected, 0.7% growth last month
  • US S&P house price index: 5.6% vs. 5.7% expected, 6.7% previous
  • US consumer confidence prints at 94.5, a 7-year high for the report

Forex traders were on FOMC watch during the U.S. trading session, but that didn’t stop some investors from pricing in a couple of news reports.

The dollar started the session on the red side of the charts after Uncle Sam’s durable goods orders widely missed market expectations. Capital spending fell by 1.3% in September, its biggest drop in eight months. The data hinted that companies are reluctant to expand their operations while they’re still waiting for growth in the euro region to pick up.

Luckily for Greenback bulls, a consumer confidence report beat market expectations with a reading of 94.5 against the expected 87.0 mark. This suggests that companies are still feeling optimistic on Uncle Sam’s recovery, and that the unwillingness to spend on capital goods might be temporary. Still, broad risk appetite generally blanketed the markets with U.S. equities rising on positive earnings reports and gold and oil prices showing small gains.

EUR/USD jumped to an intraday high of 1.2765 before it settled back down to 1.2738. USD/JPY also slid to a 107.69 before recovering back to 108.16. GBP/USD, which took a hit from BOE’s Cunnlife hinting at a delay in rate hikes, only reached a high of 1.6183 before closing at 1.6138.

Even the comdolls got their share of the risk appetite pie. AUD/USD finished the day 22 pips higher than its open price at .8860 after hitting an intraday high at .8883 while NZD/USD also enjoyed a jump to .7959 before closing 32 pips higher than its session open price. USD/CAD, which benefited from a slight recovery in oil prices, fell by 55 pips to 1.1170.

Asian session forex traders don’t have a lot to look forward to with only Japan’s industrial production reports on the docket. Numbers printed a few hours ago exceeded market expectations, so we’re seeing a bit of risk appetite among high-yielding currencies. Watch the newswires closely for news that might shift risk sentiment!

See also:

London Session Recap

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