U.S. Session Forex Recap – May 7, 2015

  • US ADP report: 169K vs. 200K expected, last month’s data revised from 189K to 175K
  • US preliminary quarterly labor costs: 5.0% vs. 4.5% expected, 4.1% previous
  • US non-farm productivity: -1.9% as expected vs. -2.1% previous
  • CAD IVEY PMI: 58.2 vs. 49.2 expected, 47.9 previous
  • EIA crude oil inventories: -3.882M vs. 1.5M expected
  • AU jobs numbers on tap

Geronimooo!!! Forex traders once again dragged the dollar lower against its counterparts on weak U.S. jobs numbers and positive surprises from other major economies.

Data from payroll provider ADP showed that only a net of 169,000 workers were added to corporate payrolls, lower than the expected 200,000 figure. Not only that, but last month’s data was also revised from 189,000 to 175,000. This, coupled with data misses from Uncle Sam over the past few days, hinted that the economy might be losing momentum.

USD/JPY fell by 39 pips (-0.33%) to 119.45 while GBP/USD shot up by 39 pips (+0.26%) to 1.5253 and USD/CHF dropped by 85 pips (-0.92%) to .9159.

The euro was also under the spotlight yesterday, as it rocketed across the board. One possible factor is news of European Commission President Jean-Claude Juncker discussing reforms with Greece’s Alexis Tsipras. Though forex traders are generally skeptical of any real progress, it was enough to entice some euro bulls.

Another possible euro-booster is the upward revisions in the euro zone’s services and manufacturing PMIs. The cherry on top of the euro’s sundae though, was technical breaks in major euro pairs.

EUR/USD broke above its 1.1250 highs and hit 1.1370 before closing with a 127-pip gain (+1.13%) to 1.1349 while EUR/JPY also saw a nice 108-pip rally (+0.80%) to 135.58 and EUR/GBP jumped by 65 pips (+0.88%) to .7440.

Comdoll price action wasn’t as one-directional. The Aussie, Loonie, and Kiwi gained pips early in the U.S. session on strong Chinese, Canadian, and oil data but failed to sustain their gains in the afternoon trading.

AUD/USD popped up to .8031 before closing at .7975, USD/CAD fell to 1.1941 before capping the day back to 1.2042, and NZD/USD reached .7551 before closing at .7508.

Comdoll fans are in for more action as Australia prints its employment numbers at 2:30 am GMT. Forex traders are looking for an uptick in unemployment rate from 6.1% to 6.2% and a net increase of 4,000 workers who have found jobs from last month’s 37,700 uptick. Better-than-expected numbers could extend the Aussie’s weekly gains while a disappointing reading could fuel AUD/USD profit-taking.

Good luck!

See also:

London Session Recap

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