U.S. Session Forex Recap – Dec. 19, 2014

  • US initial jobless claims down to 289K vs. 295K expected and previous
  • US Philly Fed index falls to 24.5 reading in December vs. 26.0 reading expected, 40.8 previous
  • US flash services PMI drops to 53.6 vs. 57.1 expected, 56.2 previous
  • US leading indicators up by 0.6% as expected
  • WTI crude falls by another $1.64 to $54.81
  • S&P 500 up by 46 points to 2,060, its best rally since January 2013

It was a good trading session for forex volatility hunters, as investors priced in a mix of dollar strength and a bit of risk appetite.

The dollar started the U.S. trading session on a strong note despite the release of worse-than-expected reports from Uncle Sam. One probable reason is that the U.S. equities market was having a good day alongside the U.S. 10-year Treasury yields, which climbed 7 basis points to 2.21%.

EUR/USD slipped by another 10 pips to 1.2286 while USD/JPY tested a 119.31 high before settling down to 118.79. Meanwhile, GBP/USD jumped by 39 pips to 1.5673 on the back of strong U.K. retail sales data.

Strangely enough, the comdolls weren’t on the Greenback rally train despite another weak session for oil prices. AUD/USD might have inched 14 pips lower to .8171 but USD/CAD actually slipped by 14 pips to 1.1597 and NZD/USD shot up by 18 pips to .7761.

Will comdoll bulls gain momentum today? We don’t have much on the docket during the Asian session save for the BOJ monetary policy statement out in a couple of hours. Analysts aren’t expecting any changes from the central bank, but keep an eye out for possible comments on the falling energy prices as well as the yen’s recent weakness and its impact on the BOJ’s short-term policies.

If you’re big on trading the Asian session economic reports, then you could also watch out for the impact of New Zealand’s visitor arrivals report out a couple of hours ago, together with the country’s credit card spending and ANZ business confidence data.

Good luck and good trading!

See also:

London Session Recap

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