U.S. Session Forex Recap – Jan. 26, 2015

  • CA CPI: -0.7% vs. -0.6% expected, -0.4% previous
  • CA core CPI: -0.3% as expected vs. -0.2% previous
  • CA retail sales: 0.4% vs. -0.2% expected, 0.0% previous
  • CA core retail sales: 0.7% vs. 0.1% expected and previous
  • US flash manufacturing PMI: 53.7 vs. 54.0 expected, 53.9 previous
  • US existing home sales: 5.04M vs. 5.08M expected, 4.92M previous
  • US CB leading index: 0.5% vs. 0.4% expected and previous
  • Greece’s anti-austerity Syriza party wins weekend elections

Profit-taking was the name of the game for U.S. session forex traders, as they dragged the low-yielding Greenback lower across the board.

After getting heavily sold off in the earlier trading sessions, high-yielding currencies managed to get some pips back before the end of the week. If you recall, traders sold the euro and Loonie after the ECB’s QE announcement and BOC’s rate cut while other comdolls were sold in anticipation of dovish announcements from the RBA and RBNZ.

It also didn’t help that U.S. equities mostly closed in the red as investors take profits and price in the first earnings reports. S&P 500 closed with a 0.55% loss and DJIA down by 0.79%.

EUR/USD recovered from an intraday low of 1.1115 to 1.1208 while GBP/USD shot up from 1.4951 to 1.4999 and USD/JPY slipped by 31 pips (-0.27%) to 117.81. Even AUD/USD gained 23 pips (+0.29%) to .7920 and NZD/USD inched 14 pips higher (+0.18%) to .7457.

The Loonie was could have also grabbed the headlines with Canada printing its inflation and retail sales numbers. The inflation readings supported the BOC’s decision to cut its rates, but this time forex traders paid attention to the upside surprise in retail sales. This is probably why USD/CAD fell back from an intraday high of 1.2455 to 1.2424 despite another dip in oil prices.

But that was last week. This week Asian session forex traders are starting their day by pricing in last weekend’s Greek elections, which saw anti-austerity Syriza party crushing its competitors. Remember that party leader Alexis Tsipras made promises to reverse many of the austerity measures made by Greece since it received bailouts in 2010.

If you’re looking to trade news reports though, then you could watch out for the BOJ’s meeting minutes and Japan’s trade numbers out at 12:50 am GMT. Australian markets are out on Australia Day holiday and New Zealand’s banks are also closed in celebration of Auckland Anniversary, but keep your eyes peeled for any volatility related to Greece’s election results or Japan’s trade balance data.

Good luck!

See also:

London Session Recap

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