U.S. Session Forex Recap – Mar. 12, 2015

  • US crude oil inventories: 4512K vs. 4595K expected
  • UK NIESR GDP estimate at 0.6%, previous reading revised from 0.7% to 0.6%
  • RBNZ keeps rates on hold, Wheeler less dovish than expected in his speech
  • AU jobs numbers print better-than-expected

With no major data to price in, overall dollar strength and euro weakness dominated U.S. session forex trading.

Uncle Sam didn’t print any economic report save for its oil inventories, so traders only had their Fed rate hike speculations to price in. It also helped that sentiment for other major economies encouraged a bit of risk aversion.

The euro continued to fall against its counterparts on the back of the ECB’s QE and uncertainty over Greece’s future. Meanwhile, the pound dealt with weak U.K. data and dovish central banker speeches and comdoll traders priced in a possible RBNZ rate cut.

EUR/USD slipped by another 49 pips (-0.46%) to 1.0547, GBP/USD fell by a whopping 119 pips (-0.79%) to 1.4929, and USD/CHF inched 30 pips higher (+0.30%) to 1.0092. Not surprisingly, the battle of low-yielding currencies resulted to USD/JPY only moving 5 pips lower from its session open price.

Not even the comdolls were safe from the dollar’s strength. Weak reports from Australia and China translated to U.S. session traders pushing AUD/USD down to a low of .7577 before closing it 22 pips lower than its session open price.

Meanwhile, USD/CAD visited its 2015 highs at 1.2797 before closing at 1.2750. Even the Kiwi gave up pips and was trading around 50 pips lower from its session open price before the RBNZ printed its latest policy statement.

Let’s see if the comdolls gain back some of their losses today. The RBNZ provided a good boost for the Kiwi when it kept its rates steady and RBNZ head Wheeler had a less-dovish-than-expected speech. Australia has also just released its jobs numbers, which printed better than analysts had expected. Will these reports provide sustained strength for the comdolls today?

Keep an eye out for any reversal/retracement opportunities that might come your way today!

See also:

London Session Recap

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