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

  • US initial jobless claims: 262K vs. 290K expected, 296K previous
  • US personal spending: 0.4% vs. 0.5% expected, 0.2% previous
  • US personal income: 0.0% vs. 0.2% expected, 0.4% previous
  • US quarterly employment cost index: 0.7% vs. 0.6% expected, 0.5% previous
  • US Chicago PMI: 52.3 vs. 50.0 expected, 50.1 previous
  • CA monthly GDP: 0.0% vs. -0.1% expected, -0.2% previous
  • EUR shoots higher on technical breakouts
  • Japan household spending, national CPI, and unemployment rate came in better-than-expected
  • China on Labor Day holiday
  • China’s manufacturing and non-manufacturing PMI on tap
  • Australia’s quarterly PPI report scheduled today

Forex traders saw a fierce round of tug-o-pips during the U.S. session, as they priced in both technical and fundamental catalysts.

The euro was the star of the forex show with its upside breakout against the Greenback. Data from the euro zone was mixed at best, but it was enough for traders to push the euro into hitting short squeezes. It also helped that higher German bund yields and inflation numbers eased concerns over growth in the region.

EUR/USD broke above the 1.1150 handle and even finished near its 1.1266 intraday high after retracing to the 1.1117 level. EUR/JPY also saw a 32-pip gain (+0.25%) to 129.69 while EUR/GBP shot up by 53 pips (+0.73%) to .7314.

The Greenback was also under the spotlight after Uncle Sam printed mostly better-than-expected reports. Data showed the initial jobless claims falling from 290K to 262K while personal spending and the Chicago PMI also exceeded market expectations. While these aren’t tier 1 reports, the improvement in employment numbers, as well as end-of-month profit-taking, convinced some of the dollar bulls to attack.

USD/JPY ended the session with a 46-pip gain (+0.39%) at 119.38 after hitting an intraday high of 119.89 while GBP/USD slid by 63 pips (-0.41%) to 1.5354 and USD/CHF slipped by 30 pips (-0.32%) to .9328.

Forex price action wasn’t as decisive among the comdolls. The Aussie continued to take hits from interest rate cut speculations with AUD/USD slipped by 56 pips (-0.71%) to an intraday low of .7863 before finishing the day at .7914. Meanwhile, the Loonie failed to find support from another hike in oil prices as USD/CAD hit an intraday high of 1.2132 before closing 29 pips higher (+0.24%) than its session open price.

Today’s a big day for Asian session forex traders with Japan’s household spending, Tokyo and national CPI, and unemployment rate all on schedule. Not only that, but China’s manufacturing and non-manufacturing numbers are also scheduled at 1:00 am GMT, followed by Australia’s quarterly PPI report at 1:30 am GMT.

With Japan’s numbers already out and not showing significant impact on the yen, the reports to watch would be China’s PMI releases. Market players are looking for a 50.0 reading (down from 50.1) for the manufacturing PMI while the non-manufacturing report is expected to print higher than its 53.7 previous release. China is on Labor Day bank holiday today so any reaction might be muted, but keep your eyes glued to the tube in case we see any shit in risk sentiment.

Good luck!

See also:

London Session Recap

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