U.S. Session Forex Recap – Apr. 22, 2015

  • CA wholesale sales:-0.4% vs. 0.2% expected, -2.9% previous
  • Japan trade balance: 229.3 billion JPY vs. 44.6 billion JPY expected, -425 billion JPY previous
  • Greek Finance Minister Varoufakis says there are clear signs of convergence among leaders
  • Saudi announces end to bombing campaign in Yemen
  • AU quarterly inflation numbers due today

Forex price action was deep in Chopsville throughout the U.S. session, as a lack of data inspired directionless trading for the major currencies.

The dollar started the session on a weak note as the bears continued to price in a technical support on Cable and overall risk appetite in the markets.

GBP/USD reached 1.4973 before closing at 1.4928 while USD/CHF also dipped to .9507 before dollar buyers stepped in and pushed it back up to .9548. USD/JPY was more choppy with its moves just above or below the 119.50 handle. The pair eventually closed at 119.67.

Greece’s Varoufakis also grabbed headlines with his speech about the leaders “reaching clear signs of convergence” though it hadn’t made a significant impact on the euro. After all, this isn’t the first time that the Finance Minister has sent mixed signals to the markets.

EUR/USD hit a high of 1.0781 before coming back down to 1.0736 while EUR/GBP inched 6 pips (+0.08%) to .7192 and EUR/JPY popped up by 53 pips (+0.41%) to 128.48.

The comdolls weren’t as lucky against the Greenback. After seeing strength in early London session trading, the bears attacked and dragged the high-yielding currencies lower.

The Aussie continued to take hits from a dovish RBA meeting minutes with AUD/USD slipping by 28 pips (-0.36%) to .7707 while the Aussie-related NZD/USD also dipped by 33 pips (-0.43%) to .7669.

The Loonie, which previously found support from reduced rate cut speculations, was weighed by oil prices dropping on the back of Saudi ending its bombing campaign against Yemen. USD/CAD popped up by 50 pips (+0.41%) to 1.2281 while CAD/JPY fell by 16 pips (-0.16%) to 97.44.

Will we see more comdoll losses today? With Japan’s trade data already out, the biggest report Asian session forex traders are looking forward to is Australia’s quarterly inflation numbers out at 2:30 am GMT. Market players are expecting a 0.1% reading from its previous 0.2% print, but watch out for significantly higher or lower numbers in case it fuels or reverses yesterday’s trends.

Good luck!

See also:

London Session Recap

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