U.S. Session Forex Recap – Dec. 15, 2014

  • US PPI down by 0.2% vs. 0.1% decline expected, 0.2% uptick previous
  • US Michigan consumer confidence prints at 93.8 vs. 89.5 expected, 88.8 previous
  • S&P falls by 1.62%, DJIA down by 1.79% as oil prices drop to five-year lows

Ho-hum. Forex price action was relatively muted in last Friday’s U.S. forex trading session as the previous sessions’ market themes continued to dominate trading.

Trading was a little more interesting in the U.S. equities market as traders reacted to oil prices dropping to its five-year lows. Aside from OPEC not signaling much concern over falling oil prices, the U.S. Energy Information Administration (EIA) had also upgraded its U.S. crude oil output forecasts last week.

News of oil hitting new lows and a bit of risk aversion weighed on S&P 500 and DJIA as well as the U.S. 10-year Treasury yields. This is probably why the dollar continued to give back some of its gains against its major counterparts.

EUR/USD hit an intraday high at 1.2485 before closing at 1.2455 while USD/CHF had slipped to a low of .9619 before capping the day at .9643 and GBP/USD closed 9 pips higher at 1.5719 after ranging tightly for most of the day.

Comdoll trading was a bit more interesting thanks to falling commodities warring with overall dollar weakness. AUD/USD fell to a session low of .8227 before closing at .8253, NZD/USD dropped by 35 pips to .7776, and USD/CAD recovered from its low of 1.1516 and closed at 1.1571. Yikes!

Let’s see if the dollar will gain any ground this week. Japan’s election is the biggest story of the hour as Japanese Shinzo Abe wins back another term and his party wins last weekend’s elections by a landslide. Another term for Abe could mean continuation of the BOJ’s easy monetary policies. Watch your yen crosses closely for significant reaction!

Aside from Japanese elections, we’ll also see Japan’s Tankan manufacturing and non-manufacturing numbers printed at 12:50 am GMT, followed by Australia’s new motor vehicle sales at 1:30 am GMT.

See also:

London Session Recap

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