U.S. Session Forex Recap – Jan. 14, 2015

  • US IBD consumer optimism: 51.5 vs. 48.7 expected, 48.4 previous
  • US JOLTS job openings: 4.97M vs. 4.86M expected, 4.83M previous
  • US Fed budget balance: 1.9 billion USD vs. 3 billion USD expected, -56.8 billion USD previous
  • Risk aversion dominates as oil touches below $45

With no major economic data printed, forex market players once again turned their attention to falling oil prices. Which currencies were affected by risk aversion?

The yen came out on top of the pile, as risk aversion pushed investors who sold the yen last year to take out their higher-yielding bets. The Greenback could have also pocketed some pips, but any gain was limited by a weak U.S. equities performance and a dip in U.S. 10-year Treasury yields.

Major pairs like EUR/USD, GBP/USD, USD/CHF, and AUD/USD mostly stayed within their session open prices, while USD/JPY staged a 62-pip dive to 117.84.

Similar moves could be seen in EUR/JPY (down 85 pips to 138.72), GBP/JPY (down 109 pips to 178.67), AUD/JPY (down 44 pips to 96.21), and NZD/JPY (down 75 pips to 91.10)

The oil-related Loonie was surprisingly steady against its major counterparts, possibly because oil prices eventually popped back up after testing new five-and-a-half-year highs.

USD/CAD found resistance at the 1.2000 handle and closed at 1.1953 while CAD/JPY slipped 41 pips to 98.59 and both AUD/CAD and NZD/CAD closed around 30 pips higher than their session lows.

Will Asian session forex traders buy more yen and sell high-yielding currencies? The only report on tap is Japan’s preliminary reading of its machine tools orders data. The release doesn’t usually have a significant impact on price action, but keep your eyes glued to the tube in case more forex bulls and bears step in and decide to move currencies around!

See also:

London Session Recap

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