U.S. Session Forex Recap – Jan. 30, 2015

  • US initial jobless claims: 265K vs. 300K expected, 308K previous
  • US pending home sales: -3.7% vs. 0.5% expected, 0.6% previous
  • NZ building permits: -2.1% vs. 10.5% in November
  • NZ visitor arrivals: -1.3% vs. 3.1% previous
  • USD gains across the board

Dollar domination was the name of the game during the U.S. forex trading session, as investors went back to pricing in a Fed rate hike some time this year.

With the Fed making little changes to its policies and biases this week, the dollar bulls went back to buying with a vengeance. It also helped that Uncle Sam’s initial jobless claims surprised to the upside with only a 265K reading instead of the 300K that market players were expecting.

USD/JPY capped the session with a 20-pip jump (+0.17%) after hitting an intraday high at 118.49, while GBP/USD fell by 61 pips (-0.40%) and USD/CHF inched 41 pips higher (+0.45%) to .9232.

Currency bears probably had more fun against the comdolls though, thanks to the RBNZ dropping its hawkish bias and analysts now speculating a rate cut from the RBA next week. It also didn’t help that gold prices plunged to its two-week low on the Fed’s non-action.

AUD/USD fell to a low not seen since 2009 before it recovered to just 10 pips lower than its open price. NZD/USD also slipped by another 15 pips (-0.21%) to .7256 after falling heavily in the earlier trading sessions.

Surprisingly, the euro bulls also went out of hibernation. Speculations of an SNB intervention (EUR/CHF shot up by 73 pips or 0.71%) also propelled other euro pairs higher and enabled the common currency to recover some of its losses against its counterparts.

EUR/USD hit a high at 1.1367 before settling back at 1.1325, while EUR/GBP saw a 49-pip rally (+0.66%) to .7517 and EUR/JPY went up by 57 pips (+0.43%) to 133.97.

Today’s another big day for forex traders, starting with a data dump from Japan. We’re set to see its inflation, household spending, unemployment numbers, and industrial production.

Analysts are generally expecting better numbers from last month, but keep an eye out for any significant surprises that might affect the yen’s intraday price action. More specifically, watch Japan’s inflation numbers. Remember that while the BOJ hasn’t made changes to its policies, a significantly slowing inflation rate could spur the central bank into adding more stimulus.

See also:

London Session Recap

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