- S&P downgrades Russia’s credit rating to junk
- CHF weakens on possible SNB intervention
- AU NAB business confidence and China’s CB leading index reports on tap
Though some US traders were preparing for a blizzard and there was no major economic data printed, forex traders still saw some action yesterday. What happened to the major currencies?
Franc pairs received a nice boost on the back of rumors that the SNB has stepped in to buy EUR/CHF. USD/CHF ended the session with a 114-pip gain (+1.28%) to .9031 while EUR/CHF jumped by 143 pips (+1.43%) to 1.0171.
Yen bears also got busy despite the lack any apparent catalyst for the move. USD/JPY inched 14 pips higher (+0.12%) to 118.48 while EUR/JPY gained 36 pips (+0.27%) to 133.44, GBP/JPY rocketed by 122 pips (+0.68%) and AUD/JPY jumped by 28 pips (+0.30%) to 93.86.
Even the European currencies saw some action against the Greenback. EUR/USD bounced by 18 pips (+0.16%) after getting pummeled during the early London session, while GBP/USD showed an 87-pip recovery (+0.58%), possibly on BOE’s Kristin Forbes’ remarks that interest rates may rise sooner than expected if inflation rebounds strongly after its recent decline.
Commodity-related currencies weren’t as lucky against the dollar. With oil prices still taking hits and investors expecting a dovish monetary policy statement from the RBNZ this week, it’s no surprise that USD/CAD closed 58 pips higher than its intraday low at 1.2464 while NZD/USD dropped by 22 pips (-0.30%) to .7415.
Will Asian session forex traders extend the comdolls’ weak streak? Australia is set to print its NAB business confidence data at 12:30 am GMT while China is scheduled to release its CB leading index numbers at 2:00 am GMT.
These reports don’t usually cause sustained moves for the Asian currencies, but keep an eye out for significant hits or misses in case they influence price action after all.
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!