U.S. Session Forex Recap – Nov. 27, 2014

  • US durable goods orders up by 0.4% vs. 0.6% decline expected, 0.9% decline previous
  • US core durable goods orders down by 0.9% vs. 0.5% growth expected, 0.2% uptick previous
  • US initial jobless claims rises to 313K vs. 288K expected, 292K previous
  • US personal spending up by 0.2% vs. 0.3% uptick expected, 0.0% growth previous
  • US Chicago PMI unexpectedly declines to 60.8 vs. 63.0 reading expected, 66.2 reading previous
  • US UoM consumer sentiment revised down from 89.4 to 88.8
  • US pending home sales declines by 1.1% in October vs. 0.5% growth expected
  • US new home sales clocks in at 458K vs. 471K expected, 455K previous
  • AU quarterly private capital expenditure on tap

Look who started their feast early! Dollar bears were all over the place during the U.S. forex trading session, thanks to a bit of profit-taking and a string of weak reports from Uncle Sam.

The Greenback started slipping an hour or two before the U.S. market open, as a couple of dollar bulls started taking profits ahead of the Thanksgiving holiday. The move was further fueled by Uncle Sam’s core durable goods orders report dropping by 0.9% instead of rising by 0.5% and the initial jobless claims also missing its market expectations.

EUR/USD jumped by 47 pips to its 1.2532 intraday high, GBP/USD also touched the 1.5800 handle, and USD/JPY slipped by 33 pips to 117.44.

The selloff didn’t last for long though, as some forex bulls stepped in and took advantage of the strong moves. The Greenback gained a couple of intraday pips back even as we saw downside surprises in the Chicago PMI and pending and new home sales, as well as a downside revision in the UoM consumer sentiment report a couple of hours into the session.

EUR/USD finished the session only 25 pips higher than its open price, GBP/USD didn’t log in any more intraday gains, and USD/JPY even closed 3 pips higher at 117.73.

The comdolls also gained pips on the Greenback, with AUD/USD jumping by 38 pips to .8551 throughout the session, while NZD/USD also gained 40 pips to .7881 and USD/CAD slipped by 29 pips to 1.1236.

Let’s see if the Asian session traders pick up on the dollar-selling theme. New Zealand printed a weaker-than-expected trade balance data a couple of hours earlier, but so far the forex bears haven’t taken a bite on the Kiwi. Australia’s quarterly private capital expenditure is also on tap at 12:30 am GMT.

Market players are expecting a 1.9% decline after the previous quarter’s 1.1% growth, but keep an eye out in case we see any significant surprises that might fuel the comdolls’ gains against the Greenback!

See also:

London Session Recap

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