U.S. Session Forex Recap – Mar. 5, 2015

  • US ADP: 212K vs. 219K expected, 250K previous
  • US ISM non-manufacturing PMI: 56.9 vs. 56.5 expected, 56.7 previous
  • US Beige Book generally reflected an expanding economy and optimism
  • US final services PMI: 57. Vs. 54.8 expected, 57.0 previous
  • BOC keeps rates steady at 0.75%, makes less-dovish-than-expected statements
  • Oil prices shrugs off higher oil inventories report
  • AU retail sales and trade balance report on tap

Geronimooo! Thanks to reports from major economies, the dollar reigned supreme among its major counterparts during the U.S. forex trading session.

The biggest story of the hour is the overall dollar strength during the session. Uncle Sam’s reports certainly helped, with the ISM services PMI clocking in above expectations and the Beige Book report reflecting optimism.

EUR/USD fell by 49 pips (-0.44%) to 1.1075 after breaking below 1.1150 while GBP/USD also suffered a 72-pip drop (-0.47%) to 1.5263. USD/JPY also inched 11 pips higher (+0.09%) to 119.71 and USD/CHF climbed 18 pips (+0.19%) to .9632.

It also helped the Greenback that sentiment for its counterparts weren’t that hot. The euro continued to tumble across the board ahead of the ECB’s statement today as traders priced in the central bank’s stimulus plans.

Aside from EUR/USD falling to its lowest level in a decade, EUR/JPY also saw a 44-pip decline (-0.33%) to 132.59 while EUR/CHF fell to a session low of 1.0631 before closing at 1.0668.

Speaking of the Loonie, the Canadian dollar found support from the Bank of Canada’s (BOC) policy statement. Not only did the central bank maintain its rates at 0.75%, but it also laid to rest speculations of a back-to-back rate cut. The BOC said that is current stimulus is appropriate, and that inflation risks are now “more balanced.” It also didn’t hurt that oil traders mostly shrugged off reports of higher oil inventories.

USD/CAD rose to an intraday high of 1.2541 before closing 101 pips lower (-0.82%) than its session open price. Meanwhile, CAD/JPY jumped by 89 pips (+0.93%) to 96.43 and AUD/CAD fell by 102 pips (-1.04%) to .9713.

Comdoll traders are in for another big day with Australia printing its retail sales and trade balance reports at 12:30 am GMT. Aussie traders tend to consider the impact of both readings before picking an intraday direction, so make sure you stick around in case there are any significant surprises!

See also:

London Session Recap

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