U.S. Session Forex Recap – Nov. 13, 2014

  • US wholesale inventories up by 0.3% vs. 0.2% expected, 0.6% previous
  • NZ food price index shows no growth vs. 0.8% uptick last month
  • Chinese industrial production and retail sales reports on tap

U.S. session forex trading might not have been as exciting as the previous sessions, but there was still enough volatility to keep forex junkies happy. So which currencies strengthened and which ones weakened?

Uncle Sam didn’t print any major reports yesterday, so forex traders mostly extended the major currency pairs’ intraday moves.

The dollar continued to gain against its European and low-yielding counterparts with EUR/USD falling by another 29 pips to 1.2435, GBP/USD dropping by 31 pips to 1.5786, USD/JPY popping up by 34 pips to 115.61, and USD/CHF finding support at .9627 and closing at .9669.

Greenback bulls weren’t as lucky against the comdolls though. Gold and oil prices both edged lower, but positive reports from both Australia and New Zealand earlier in the day were enough to keep the comdolls afloat. It also doesn’t hurt that the commodity-related dollars are offering high yields, something that could have attracted traders who priced in a delay in the BOE’s rate hike.

AUD/USD inched 10 pips higher to .8718 while NZD/USD popped up by 18 pips to .7876. USD/CAD, which shrugged off another tumble in oil prices, briefly broke below the 1.1300 handle.

Will the comdolls continue to post gains today? Asian session forex traders have a lot to look forward to, starting with Japan’s industrial production numbers and core machinery orders and Australia’s MI inflation expectations report released a while ago. Yen crosses and Aussie pairs are still in tight ranges though, so watch out for the next reports for possible volatility.

China’s industrial production, fixed asset investment, and retail sales numbers could provide the catalyst for volatility that we’re waiting for. industrial production is expected to grow by 8.0% like last month, while retail sales is also expected to maintain its 11.6% growth.

Significant hits or misses in China’s data could affect risk sentiment during the Asian session (if not the whole day), so make sure you stick around and watch your forex traders around these releases.

Good luck!

See also:

London Session Recap

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