U.S. Session Forex Recap – Mar. 17, 2015

  • US Empire State manufacturing index: 6.9 vs. 8 expected, 7.8 previous
  • US industrial production: 0.1% vs. 0.2% expected, -0.3% previous
  • US NAHB house price index: 53 vs. 56 expected, 55 previous
  • US net long-term TIC flows: -$27.2B vs. $27.2B expected, $39.2B previous
  • Draghi hints at sustained recovery taking hold in the euro zone
  • ECB falls behind on weekly bond purchases quota

The dollar’s price action was as mixed as a bag of nuts, as forex traders priced in several economic reports during the U.S. session.

The dollar lost pips against its European counterparts. The euro gained across the board when the ECB only bought €9.75B this week, which is less than its weekly quota if it needs to meet its €60B monthly target. Meanwhile, pound traders focused on the overall disappointment in yesterday’s U.S. reports.

EUR/USD shot up to an intraday high of 1.0619 before settling 47 pips (+0.45%) higher than its open price at 1.0575. GBP/USD also saw a 47-pip gain (+0.32%) to 1.4831 after hitting a high of 1.4853.

The euro’s gains didn’t stop against the dollar though. Word around the hood is that the ECB is falling behind on its monthly QE quota because there’s not a lot of sellers left. EUR/JPY also saw a 65-pip climb (+0.51%) to 128.37 while EUR/CHF rocketed by 81 pips (+0.77%) to 1.0660.

Price action of comdolls like the Aussie, Loonie, and Kiwi weren’t as decisive. Oil prices took another tumble yesterday, which didn’t help the Loonie bears’ cause against the dollar. Meanwhile, Aussie and Kiwi traders are trading tight ranges ahead of today’s RBA meeting minutes.

AUD/USD stayed in a tight range around the .7650 area and NZD/USD inched 23 pips higher (+0.31%) to .7377. Meanwhile, the tug-o-pips between Greenback and Loonie sellers ended with USD/CAD trading in a range just below the 1.2800 handle.

Let’s see if the comdolls can gain some momentum today. A couple of hours earlier the RBA had released its meeting minutes, which showed that the central bankers had considered a rate cut but had decided to wait for more data. This is probably why the Aussie is down by a few pips against its counterparts right now.

In a few hours we’ll see the BOJ’s monetary policy decision. Market players aren’t expecting any changes from the central bank, but keep your eyes peeled for any changes in bias that might mean more or less stimulus from the central bank in the near future.

Good luck!

See also:

London Session Recap

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