U.S. Session Forex Recap – Dec. 9, 2014

  • CA housing starts clocks in at 196K vs. 195K expected, 184K previous
  • CA building permits rises by 0.7% in October vs. 3.9% uptick expected, 12.5% growth previous
  • Greece gets two-month extension on bailout
  • Fed’s Lockhart not in a rush to drop “considerable time” rhetoric

Retracement was the name of the game during the U.S. forex trading session, as investors took some profits from last week’s moves and priced in a weak Japanese report.

USD/JPY was the biggest move of note throughout the session with its decline to an intraday low of 120.21 from its 121.65 open price. Analysts say that Japan’s weaker-than-expected GDP report had something to do with it although a bit of profit-taking from last week’s post-NFP moves might have also come into play. It also didn’t help the Greenback that U.S. 10-year Treasury yields also slipped by 5 basis points to 2.26% and that U.S. equities ended the day in the red.

EUR/USD bounced 89 pips higher to an intraday high of 1.2344 before closing at 1.2311 despite dovish comments by Nowotny during the London session while GBP/USD also saw a nice 62-pip jump to 1.5679 before settling back to 1.5645.

Comdoll bulls and bears weren’t as decisive. NZD/USD enjoyed some of the dollar weakness with its 18-pip climb to .7661 but AUD/USD stayed at the .8280 area despite a decent trade balance report from China printed in the Asian session. Meanwhile, another dip in oil prices and a disappointing Canadian building permits report weighed on the Loonie and pushed USD/CAD another 46 pips higher to 1.1482.

Will the dollar continue to post losses today? Asian session forex traders have the BRC’s retail sales monitor to look forward to at 1:01 am GMT, followed by Australia’s NAB business confidence report at 1:30 am GMT. Both reports don’t usually cause sustained impact on the pound or the Aussie, but they could dictate sentiment for the currencies if the actual figures hit or miss significantly. Watch out for these forex events, will ya?

See also:

London Session Recap

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