U.S. Session Forex Recap – Apr. 14, 2015

  • US Federal budget deficit: 53B USD vs. 43B USD expected, 192B USD previous
  • Speculations on Greece weighed on EUR
  • AU NAB business confidence on tap

The dollar lost pips to its counterparts in yesterday’s U.S. session forex trading despite the lack of economic data. What’s up with that?!

Uncle Sam didn’t release any major data save for the U.S. budget balance. The report showed a deficit of $53B in March, slightly higher than the $43B deficit expected. Still, some analysts point out that if not for monthly calendar differences, the deficit would have reached $89B.

It also didn’t help that U.S. Treasury bonds caught investor attention after selling off heavily last week. For forex newbies out there, increased demand for U.S. government bonds lowers its yields, which typically lowers demand for the dollar. Last but definitely not the least, dollar bears used the lack of data as an opportunity to make pips ahead of this week’s retail sales data.

Overall euro weakness limited EUR/USD’s session gains to 25 pips (+0.24%) but USD/JPY fell by 43 pips (-0.36%) to 120.13 and USD/CHF suffered a 58-pip decline (-0.59%) to .9779. Even GBP/USD, which suffered heavily last week, gained 66 pips (+0.45%) to 1.4676. Yowza!

The comdolls also got their piece of dollar pie despite the weaknesses seen in the earlier trading sessions. If you recall, China’s surprisingly weak trade data had weighed on commodity-related currencies during the Asian and early London trading.

AUD/USD jumped by 11 pips (+0.15%) to .7689 while USD/CAD slipped by 34 pips (-0.27%) to 1.2595 and NZD/USD inched 18 pips higher (+0.24%) to .7454.

The dollar wasn’t the only loser in the forex arena though. The euro also took hits from all sides, thanks to increased speculations of a Greek default. Apparently, Greece has missed the deadline on providing plans for structural reforms in order to unlock more cash ahead of its payment dates to the IMF.

This is probably why EUR/JPY ended the session 16 pips lower (-0.13%) at 126.94 while EUR/CHF declined by 35 pips (-0.34%) to 1.0334.

Will Asian session forex traders extend the dollar’s losses? Australia has just printed its NAB business confidence report (3 vs. 0 previous) and so far the Aussie bulls are loving it. No other major report is scheduled for release over the next couple of hours, so watch out for extensions of yesterday’s strong moves.

Good luck!

See also:

London Session Recap

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