U.S. Session Forex Recap – Nov. 20, 2014

  • US building permits at 1.08M vs. 1.04M expected, 1.03M previous
  • US housing starts down to 1.01M vs. 1.03M expected, 1.04M previous
  • No surprises from FOMC minutes
  • Gold declines on weakening support for Swiss gold referendum

Most major currencies traded on tight ranges during the U.S. forex trading session, as investors saw no surprises from the FOMC minutes.

Minutes from the latest Fed meeting shows that officials are worried about a prolonged period of sub-2% inflation. As dovish as the overall tone is though, the statement didn’t contain anything new and central bankers are still not hinting at interest rate hikes anytime soon.

This was probably why EUR/USD only ended the day only 11 pips higher than its open price, while USD/CHF was locked below the .9600 psychological handle and GBP/USD stayed near the 1.5670, just above its 100 SMA mark on the 1-hour chart. The dollar gained against the low-yielding yen though, as USD/JPY climbed by 36 pips to 117.99.

Gold price action was a bigger headline during the U.S. forex trading session when it fell on reports that support for a Swiss gold referendum is losing momentum. Gold fell by $14 to $1,184, and weighed on the Aussie across the board.

AUD/USD slipped by 18 pips to .8615, while GBP/AUD rocketed by 49 pips to 1.8197 and EUR/AUD shot up by 44 pips to 1.4560.

Today’s another big day for the comdolls starting with Japan’s trade balance due at 12:50 am GMT. Japan has technically just entered another recession, so any figure weaker than the expected 1.03 trillion JPY deficit (vs. 0.96 trillion JPY deficit last month) could signal longer periods of easy monetary policy and drag the yen even lower.

Also on tap today is China’s HSBC flash manufacturing PMI at 2:45 am GMT. The report has been on a steady downtrend since September, so a figure lower than the 50.2 expected reading could spark more speculations that China’s growth is slowing down. Make sure you’re around your Aussie and Kiwi charts when the report is printed!

See also:

London Session Recap

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