U.S. Session Forex Recap – May 13, 2015

  • UK NIESR quarterly GDP estimate: 0.4%, previous month’s figure revised from 0.6% to 0.3%
  • US JOLTS job openings: 4.99M vs. 5.16M expected, 5.14M previous
  • US NFIB small business optimism index: 96.9 vs. 96.1 expected, 95.2 previous
  • Fed’s Williams favors early but gradual rate hike
  • RBNZ plans to tighten lending restrictions in Auckland

Bond price action was the name of the game during the U.S. session as forex traders had no major economic data to price in.

German bund yields and U.S. Treasury yields were under the spotlight early in the session with the former enjoying a rally on the back of Greece making its IMF deadline while the latter was weighed by misses in the lower-tier, job-related reports and possibly on investors flocking in ahead of the U.S. Treasury auctions.

EUR/USD slid down by 21 pips (-0.19%) to 1.1216 while EUR/JPY also slipped by 40 pips (-0.30%) to 134.41. USD/CHF also inched 43 pips higher (+0.47%) to .9291.

The dollar wasn’t as lucky against the yen, pound, and the comdolls. One possible reason is that forex traders are just pricing in positive news for the currencies. The pound is still feeling the love for last week’s favorable election results and positive manufacturing numbers during the London session while the comdolls are attracting buyers as gold and oil prices rose.

GBP/USD popped up to an intraday high of 1.5707 before settling down to 1.5673 while USD/JPY slipped by 14 pips (-0.12%) to 119.84. As for the comdolls, AUD/USD showed a 2-pip gain to .7987 after reaching a high of 0.8000 while USD/CAD dropped by 25 pips (-0.21%) to 1.2017.

Asian session comdoll traders don’t have much to price in today except for the RBNZ’s decision to tighten lending restrictions in Auckland. The move isn’t concerning Kiwi traders much though, possibly because there’s greater relief that the central bank isn’t talking (or hinting at) rate cuts.

Japan is also set to print its current account report (expected at 2.06 trillion JPY) together with a bank lending report (expected at 2.7% as last month) at 12:50 am GMT. Traders don’t usually look too closely at these reports, so keep your eyes peeled for other news that might affect risk-taking for the next couple of hours.

See also:

London Session Recap

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