U.S. Session Forex Recap – Feb 11, 2015

  • UK NIESR GDP estimate: 0.7% vs. 0.5% previous
  • US IBD consumer optimism: 47.5 vs. 51.9 expected, 51.5 previous
  • US JOLTS job openings: 5.03M as expected, 4.85M previous
  • US equities end the day in the green
  • Oil prices tumble, weighs on CAD
  • Japanese markets out on National Foundation Day bank holiday
  • AU home loans report on tap

With no major data printed in the U.S., forex traders turned their focus on headlines from other major economies.

The biggest story of the hour is the setback in oil prices. The International Energy Agency (IEA) reported that oil stockpiles in Organization for Economic Cooperation and Development (OECD) countries could raise global inventories before the impact of recent decline in oil prices could be felt.

U.S. crude oil futures fell by a whopping 5.37% to $50.02 per barrel after dropping to as low as $49.86, while Brent crude oil also dropped by 3.3% to $56.43 after hitting a low of $56.11.

Not surprisingly, the oil-related Loonie tumbled across the board. USD/CAD jumped by 90 pips (+0.72%) to 1.2574 after hitting an intraday high at 1.2624. CAD/JPY also slipped by 44 pips (-0.46%) to 94.05 and EUR/CAD popped up by 137 pips (+0.97%) to 1.4229.

With oil prices falling and the euro zone officials busy making and denying Greek-related headlines, price action of other major currencies was as mixed as a bag of nuts.

The euro and pound gained on the dollar with EUR/USD inching 28 pips (+0.25%) to 1.1316 and GBP/USD rising by 33 pips (+0.22%) to 1.5257. Comdolls like the Aussie and Kiwi weren’t as lucky though, since AUD/USD and NZD/USD mostly stayed within their tight session ranges.

Meanwhile, the yen lost across the board with USD/JPY popping up by 31 pips (+0.26%) to 119.40, EUR/JPY jumping by 67 pips (+0.50%) to 135.11, and GBP/JPY rising by 85 pips (+0.47%) pips to 182.16.

Will we see more volatility today? Japan’s market is out on a bank holiday, but Australia is set to print its home loans data at 1:30 am GMT. Analysts are expecting a 2.0% increase after falling by 0.7% last month.

Since the report doesn’t usually cause sustained move for the major currencies, keep an eye out for other news events that might affect risk appetite. Good luck!

See also:

London Session Recap

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