U.S. Session Forex Recap – Jan. 21, 2015

  • CA manufacturing sales: -1.4% vs. -0.7% expected, -1.1% previous
  • NZ Fonterra dairy prices rise by 1.0% vs. 3.6% uptick previous
  • NZ inflation falls by 0.2% in Q4 2014, its first decline in two years
  • AU Westpac consumer confidence: 93.2 vs. 91.1 previous
  • BOJ monetary policy decision on tap

Forex price action was as mixed as a bag of jellybeans, as investors start to price in their biases ahead of this week’s major events.

The dollar was one of the biggest gainers across the board. Aside from rate hike speculations and safe haven flows ahead of the ECB’s policy decision, the IMF had also upgraded its U.S. growth forecasts while downgrading its global growth outlook.

EUR/USD fell by another 39 pips (-0.34%) to 1.1551, USD/JPY ended the session 2 pips higher at 118.70 after falling to a low of 118.25, and USD/CHF shot up by 44 pips (+0.51%) to .8761.

It also gained against the comdolls on the back of concerns for China’s growth numbers. AUD/USD dropped by 30 pips (-0.37%) to .8175 while NZD/USD also lost 44 pips (-0.57%) at .7677.

The Loonie didn’t have much luck either. The comdoll was hit with a triple combo of weak Canadian manufacturing data, further decline in oil prices, and speculations that the Bank of Canada (BOC) will downgrade its growth and inflation forecasts this week.

USD/CAD rocketed by 104 pips (+0.87%) to 1.2107, CAD/JPY slipped by 84 pips (-0.85%), and EUR/CAD rose by 74 pips (+0.53%) to 1.3984.

Today’s another big day for forex traders, as we’re expecting a couple of major reports and central bank policy decisions.

Australia has just released its Westpac consumer confidence data, while New Zealand had just published its first quarterly growth decline in two years. The reports haven’t affected AUD and NZD’s charts significantly though, so watch out for other major events, such as the Bank of Japan’s (BOJ) policy statement some time in the Asian session, for possible chart direction.

Good luck!

See also:

London Session Recap

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