U.S. Session Forex Recap – Jan. 12, 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

Ooomph! The Greenback took a few steps back in last Friday’s U.S. forex trading session after traders paid attention to weak U.S. wage growth.

Last Friday Uncle Sam printed the non-farm payrolls (NFP) report, which showed a net of 252,000 workers finding jobs in December, higher than the 240,000 figure than markets were expecting. Not only that, but unemployment rate also fell to 5.6% from November’s 5.8% figure.

The dollar jumped across the board at the news. Unfortunately for dollar bulls though, traders soon paid closer attention to average hourly earnings, which fell by 0.2% in the month. That’s the fastest drop since October 2011! A slow job growth weakened the argument of an early rate hike from the Fed, and eventually took its toll on the dollar.

EUR/USD ended the day in the green for the first time in days with its 25-pip jump to 1.1843. Similar moves were seen in GBP/USD’s 32-pip climb to 1.5165, USD/JPY’s 63-pip drop to 118.56 and USD/CHF’s 21-pip slip to 1.0141. The comdolls also had a good day with AUD/USD inching 61 pips higher to .8205 and NZD/USD closing 30 pips higher than its session open price.

The Loonie was possibly the only exception thanks to Canada’s glaringly weak employment numbers. Unemployment rate remained at 6.6% but a net of 4,300 workers had lost jobs in December and participation rate had dropped to 65.9 from 66.0. Analysts had been expecting a net of 15,000 additional jobs for the month.

USD/CAD jumped to an intraday high of 1.1890 before settling at 1.1867. Meanwhile, CAD/JPY dropped by a strong 90 pips to 99.91, EUR/CAD rose by 83 pips to 1.4055, and AUD/CAD rocketed by 109 pips to .9737.

Japan is on a Coming-of-Age Day market holiday today, but Asian session forex traders still have a number of reports to trade. Australia has just printed its ANZ job ads and home loans numbers with mixed results. Stick around and pay close to forex trade opportunities that might pop up at the start of the week!

Good luck!

See also:

London Session Recap

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