U.S. Session Forex Recap – Apr. 1, 2015

  • CA January GDP: -0.1% vs. -0.2% expected, 0.3% previous
  • US S&P Case-Schiller home prices: 4.6% as expected vs. 4.4% previous
  • US Chicago PMI: 46.3 vs. 51.7 expected, 45.8 previous
  • US consumer confidence: 101.3 vs. 96.4 expected, 98.8 previous
  • AU AIG manufacturing index: 46.3 vs. 45.4 previous
  • AU building approvals, China’s manufacturing PMI on tap

Forex price action was a mixed bag of nuts during the U.S. session, as traders priced in risk sentiment and a few news releases.

The dollar didn’t find much support despite being sold off yesterday. One possible reason is the disappointing read on the Chicago PMI, which followed notable declines in the Philly Fed and Empire State manufacturing PMIs. Traders could also be taking profits ahead of this week’s NFP report. Meanwhile, the euro traded on tight ranges against its counterparts after being sold off during the London session.

EUR/USD stayed within the 1.0750 area, EUR/JPY traded around the 128.85 zone, USD/JPY lollgagged at the 119.80 level, and USD/CHF found support at the .9700 handle.

A surprise upward revision to the U.K.’s GDP continued to support the pound across the board. GBP/USD popped up to an intraday high of 1.4871 before settling down to 1.4817 while GBP/JPY rose by 99 pips (+0.56%) to 178.32 before closing at 178.01. The pound also gained on the euro with EUR/GBP falling by 24 pips (-0.33%) to .7243.

The Loonie also caught some attention after Canada’s GDP printed a 0.1% decline when market players had been expecting a 0.2% downtick. Unfortunately for Loonie bulls, investors were also looking at falling oil prices. You see, Brent oil closed down by 2.1% to $55.11 per barrel, while U.S. crude oil closed 2.2% lower at $47.60 per barrel.

Still, USD/CAD managed to slip by 92 pips (-0.72%) to 1.2685 while CAD/JPY jumped by 77 pips (+0.82%) to 94.69 and EUR/CAD fell by 105 pips (-0.77%) to 1.3613.

Let’s see if the comdolls manage to gain momentum for the next couple of hours. A couple of minutes ago Australia had printed its building approvals report (-3.2% vs. -4% expected) while China had released its manufacturing PMI numbers (50.1 vs. 49.7 expected, 49.9 previous). These positive releases bode well for risk appetite so keep a close eye on high-yielding currencies, at least until the London session open.

Good luck!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!