U.S. Session Forex Recap – Apr. 28, 2015

  • US Markit services PMI: 57.8 vs. 59.1 expected, 59.2 previous
  • US Dallas Fed manufacturing PMI: -16.0 vs. -12.0 expected
  • EUR boosted by Greece’s new debt negotiation team
  • AU CB leading index on tap

Currency price action was a bag of beans during the U.S. session, as forex traders priced in different major reports.

The Greenback had one of the most notable moves after it erased all of its intraday gains against its counterparts. While the services PMI and Dallas manufacturing reports are of the lower-tier variety, they also piled on top of the previous days’ disappointing U.S. data and supported speculations of a later rate hike from the Fed this year.

USD/JPY fell by 28 pips (-0.24%) to 119.10 while AUD/USD registered a 38-pip hike (+0.49%) to .7851 and NZD/USD popped up by 44 pips (+0.58%) to .7643.

The euro also found support after news came out that Greece PM Tsipras has reshuffled his debt negotiation team to put Finance Minister Varoufakis, who has been labeled as “time waster” by euro zone officials, on the backseat to Deputy Foreign Minister Euclid Tsakalotos. The move communicated Tsipras’ determination to reach a deal with Greece’s creditors.

Euro bulls were all over the decision judging by EUR/USD’s 52-pip (+0.48%) move to 1.0890 while EUR/JPY also saw a 32-pip gain (+0.25%) to 129.69.

Cable also got some action with a whopping 109-pip gain (+0.72%) despite the lack of any major data from the U.K. Analysts point to dollar weakness although GBP/JPY also popped up by 71 pips (+0.39%) to 181.36 and EUR/GBP slipped by 16 pips (-0.22%) to .7151.

Last but not the least is the Canadian dollar, which rocketed against the Greenback despite lower oil prices. USD/CAD slid by 55 pips (-0.45%) to 1.2100, its lowest in three months. Yowza!

Will the dollar continue to take hits today? Australia just printed its CB leading index data, which came in at 0.5% after showing 0.4% growth last month. The report doesn’t usually have sustained impact on the Aussie, so keep your eyes on other news report that might affect risk-taking.

Good luck!

See also:

London Session Recap

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