U.S. Session Forex Recap – May 8, 2015

  • US initial jobless claims: 265K vs. 278K expected, 262K previous
  • US Challenger job cuts: 52.8% vs. 6.4% previous
  • US consumer credit: 20.5B USD vs. 15.8B USD expected, 14.8B USD previous
  • CA March building permits: 11.6% vs. 2.0% expected, -0.3% previous
  • Chinese trade data, BOJ meeting minutes on tap today

The Greenback was king of pips during the U.S. forex trading session despite the release of mixed economic reports.

Uncle Sam’s jobless claims data was under the spotlight in early U.S. session trading, as the initial AND continuing claims part of the report both came in just above their lowest levels since April 2000. Not only that, but consumer borrowing also hit 20.5 billion USD in March, its fastest pace since July 2014.

The only shadow on the dollar’s bright day was the Challenger job cuts report, which showed lower oil prices accelerating job cuts to its highest level in three years. Overall though, yesterday’s numbers show that less workers are filing for jobless claims and that consumers are ramping up their spending.

This is probably why the dollar killed it across the charts with USD/JPY jumping by 56 pips (+0.47%) to 119.77 and AUD/USD dropping by 49 pips (-0.62%) to .7903 while USD/CHF also saw a nice 75-pip gain (+0.82%) to .9215.

The Loonie also made headlines with its trip down across the board. Though Canada’s building permits shot up by 11.6% (market players were expecting a 2.0% uptick), oil price action was a bigger headline. Iran’s promises to boost oil production as soon as its sanctions are lifted concerned oil players and dragged crude oil below the $60 mark by the end of the day.

USD/CAD shot up to an intraday high of 1.2163 before settling with a 36-pip gain (+0.30%) to 1.2120 while CAD/JPY fell to a low of 98.24 before closing at 98.82. GBP/CAD, which was also influenced by optimism over the U.K.’s early exit polls, climbed by 122 pips (+0.66%) to 1.8501.

Last but definitely not the least mover was the euro, which fell on concerns that there won’t be any deal for Greece by Monday. Not only have officials been downplaying negotiations, but there also hasn’t been enough headlines to even hint at significant progress heading to the weekend.

EUR/USD fell by 29 pips (-0.26%) to 1.1269 while EUR/GBP slipped by 44 pips (-0.59%) to .7384. EUR/CHF was an exception with its 58-pip climb (+0.56%) to 1.0385.

See also:

London Session Recap

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