U.S. Session Forex Recap – Dec. 17, 2014

  • US flash manufacturing PMI down to 53.7 vs. 55.2 expected, 54.8 previous
  • US building permits drops to 1.04M vs. 1.07M expected, 1.09M previous
  • US housing starts down to 1.03M vs. 1.04M expected, 1.05M previous
  • CA manufacturing sales drops by 0.6% vs. 0.3% downtick expected, 2.2% growth previous
  • Gold, oil, and ruble show slight recoveries

The dollar took hits from its counterparts during the U.S. forex trading session thanks to weak U.S. data and a slight recovery in risk appetite.

The Greenback started the session on the red side of the charts after Uncle Sam printed less-than-stellar economic data. It also didn’t help that European currencies seem to be taking advantage of the ruble’s continuous decline. EUR/USD hit a high at 1.2570 before ending the session with a 38-pip slip to 1.2515 while GBP/USD also jumped to 1.5786 before settling down to 1.5738.

The risk appetite-then-aversion moves were more pronounced across yen crosses with EUR/JPY jumping by 158 pips to 147.03 before closing at 145.97 and GBP/JPY rocketing by 244 pips to 185.08 before closing at 183.53.

The comdolls had no game against the low-yielding dollar though, especially after China printed a weak manufacturing PMI during the Asian session. AUD/USD registered a 36-pip drop to .8220 while NZD/USD ignored an uptick in Fonterra’s milk prices and dropped 40 pips further to .7790.

Meanwhile, the Loonie failed to take advantage of a slight recovery in oil prices with USD/CAD sticking to a tight intraday range while CAD/JPY erased its 180-pip jump to 101.28 with a trek back down to 100.24.

We don’t have any major comdoll reports on the docket during the Asian session, but we do have Japan’s trade balance report out at 12:50 am GMT. The report reflected a 0.89 trillion JPY deficit, better than the 0.99 trillion JPY deficit that markets were expecting. Will this mean more JPY strength today? Keep your eyes on your yen trades!

See also:

London Session Recap

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