U.S. Session Forex Recap – Jan. 9, 2015

  • US initial jobless claims up to 294K vs. 290K expected, 298K previous
  • US Challenger job cuts at 6.6%, lowest since 1997
  • US consumer credit clocks in at 14.08B USD vs. 15B USD expected, 15.97B USD previous
  • CA new house price index up by 0.1% in November as expected
  • AU retail sales, Chinese inflation numbers on tap

Not so fast! High-yielding currencies tried to get momentum in the early U.S. forex trading session, but was blocked by dollar bulls a few hours before the close.

The bigger story was the rally in equities across the board. With more and more U.S. traders getting back on their desks and positioning for the year ahead, it makes sense that DJIA and NASDAQ shot up by 1.84% while S&P 500 ended the day 1.79% higher at 2,062.13.

This is probably why the low-yielding Greenback gave up pips against its higher-yielding counterparts for most of the trading session. EUR/USD gained 42 pips at 1.1819 before the dollar bulls stepped in and dragged it back to 1.1788. Similar stories could be seen with GBP/USD popping to 1.5117 before closing at 1.5084 and USD/CHF falling to 1.0162 before bouncing back to 1.0189.

Even the comdolls had a good day against the dollar. AUD/USD continued to bank on a strong building approvals reading and inched 6 pips higher to .8115 while NZD/USD jumped 26 pips to .7814. Meanwhile, USD/CAD didn’t see any more gains above the 1.1800 handle thanks in part to stabilizing oil prices.

Let’s see if Asian session forex traders pick up the risk appetite vibe today. A few minutes earlier Australia had printed its retail sales reports, which showed a 0.1% jump in November following a 0.4% uptick in October. The Aussie and Kiwi hasn’t reacted much though, and even logged in a few more pips against the dollar.

Another report to watch out for is China’s CPI and PPI numbers due at 1:30 am GMT. Analysts are expecting a 1.5% annualized CPI gain after showing a 1.4% uptick last month and a 3.1% decline in PPI after a 2.7% slip last month. Significant deviations from market expectations could cause volatility among commodity-related currencies, so make sure you stick around when these reports are released!

Good luck!

See also:

London Session Recap

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