U.S. Session Forex Recap – Dec. 16, 2014

  • US Empire State manufacturing index clocks in at -3.6 vs. 12.1 expected, 10.2 previous
  • US NAHB house price index down to 57.0 vs. 59.0 expected, 58.0 previous
  • US industrial production up by 1.3% vs. 0.7% growth expected, 0.1% previous
  • WTI crude oil falls to $55.22, Brent dips to $62.00, and USD/RUB hits new record highs
  • Russian central bank raises its rates by a whopping 650 basis points to 17.0%

Forex price action was as mixed as a bag of nuts during the U.S. trading session, as investors priced in a couple of small catalysts.

Low-yielding currencies gained ground in the first hours of the trading session thanks to a bit of risk aversion. Aside from the hostage situation in Sydney, market players were still reacting to tumbling oil prices. WTI crude fell to $55.22 while Brent crude oil dropped to $62.00 on persistent oversupply in the markets.

EUR/USD might have ended the session unchanged, but GBP/USD slipped by 28 pips to 1.5632, and USD/CHF inched down 10 pips to .9658. Shinzo Abe’s re-election also boosted the yen as USD/JPY slid down 120 pips to 117.73, EUR/JPY fell by 140 pips to 146.39, and AUD/JPY tumbled by 103 pips to 96.66.

The Loonie was hit the most with USD/CAD popping up by another 60 pips to 1.1655, a five-year high, while CAD/JPY dropped by a whopping 156 pips to 101.01 and EUR/CAD jumped by 86 pips to 1.4493. Yikes!

Today’s another big day for the comdolls with the RBA’s monetary policy meeting minutes out at 1:30 am GMT, followed by China’s HSBC flash manufacturing PMI at 2:45 am GMT. Analysts are expecting a 49.8 figure after clocking in at 50.0 last month. Remember that a reading below 50.0 could mean that the industry is contracting. Any number significantly above or below the level could affect risk sentiment for the rest of the trading session. Meanwhile, we’re not forecasting any news from the RBA. If you recall, the central bank had said nothing new in its statement and maintained its stance that the Aussie’s current levels is still relatively high.

Good luck and good trading, folks!

See also:

London Session Recap

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