U.S. Session Forex Recap – Mar. 23, 2015

  • CA CPI: 0.9% vs. 0.8% expected, -0.2% previous
  • CA core CPI: 0.6% as expected vs. 0.2% previous
  • CA retail sales: -1.7% vs. -0.8% expected, -1.8% previous
  • CA core retail sales: -1.8% vs. -0.5% expected, -2.0% previous

It is on like Donkey Kong! Dollar bears dominated the U.S. session, as more forex traders priced in the Fed’s latest policy decision.

The dollar weakened across the board last Friday after a lack of U.S. reports turned investor attention to the Fed moving the goal posts on its next possible rate hike. If you recall, the Fed emphasized its concerns over growth and inflation last week. Of course, it also didn’t help that news from other major economies support dollar bearishness.

USD/JPY plunged by 98 pips (-0.81%) to 120.06, GBP/USD popped up by a nice 177 pips (+1.20%) to 1.4953, and USD/CHF slipped by 103 pips (-1.05%) to .9753.

Meanwhile, the euro popped up all over the charts on news that Greek and European officials have developments to announce after the Greek bailout summit on Friday. Early reports suggest that the meeting yielded options that would allow Athens to get some much-needed bailout funds. It wasn’t until hours later when the officials once again disagreed on what exactly was agreed on at the table.

In any case, EUR/USD ended the session 107 pips higher (+1.00%) to 1.0822 and EUR/JPY inched 24 pips higher (+0.19%) to 129.92.

Another headline-maker was the Loonie, which enjoyed a nice rally against the Greenback despite a downward surprise in Canada’s reports. Though inflation numbers came in as expected, lower gas receipts in Canada dragged its retail sales numbers to a 1.7% decline when analysts had only expected a 0.8% slip. Luckily for the Loonie, dollar strength and a recovery in oil prices helped support the oil-related currency.

USD/CAD shot up by 129 pips (+1.02%) to 1.2552 while CAD/JPY inched 20 pips higher (+0.21%) to 95.65. The Aussie and Kiwi were also in on the Greenback selloff with AUD/USD jumping by 84 pips (+1.09%) to .7775 and NZD/USD rocketing by 106 pips (+1.42%) to .7567.

Let’s see if Asian session forex traders pick up on last Friday’s dollar weakness. New Zealand’s Westpac consumer sentiment printed a couple of hours ago (117.4 vs. 114.8 previous) is the only report to price in until the start of London trading.

The report doesn’t usually move major currencies around, so watch your newswires closely for any news that might affect risk sentiment!

See also:

London Session Recap

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