U.S. Session Forex Recap – May 14, 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

Dollar bears unite! Thanks to more disappointing data from Uncle Sam, forex traders once again punished the Greenback and sent it lower against its major counterparts.

The U.S. retail sales numbers were under the spotlight yesterday when it disappointed market expectations for a fifth month in a row and showed a 0.3% decline. Even if we take out the impact of falling oil prices, the data still missed with only a 0.1% growth when market players had been expecting a 0.3% uptick. With wage growth and consumer spending both coming in weak in the past couple of days, some traders are wondering if the Fed would still raise its rates some time this year.

The divergence in positive euro zone data and weak U.S. data sent EUR/USD 112 pips higher (+1.00%) higher to near its two-month high of 1.1343. GBP/USD, which could have been weighed by lower growth forecasts for the U.K., actually climbed by 88 pips (+0.56%) to 1.5740. Meanwhile, USD/JPY saw a 58-pip decline (-0.48%) to 119.15 and USD/CHF fell by a whopping 101 pips (-1.09%) to .9176.

Even the comdolls were in on the dollar-selling action. Aussie traders were unfazed by disappointing Chinese data with AUD/USD popping up by 56 pips (+0.70%) to .8103 throughout the session while NZD/USD also saw a nice 16-pip move higher (+0.22%) to .7474. The Loonie also tried to test its May lows but slip in oil prices sent it back up to close right at its 1.1976 session open price.

Asian session forex traders will have another chance to push the comdolls higher with New Zealand printing its business inventories data at 22:00 am GMT, followed by its quarterly retail sales numbers at 6:45 am GMT. Market players are expecting consumer retail spending to inch 1.6% higher after climbing by 1.7% in the previous quarter.

Quarterly tier-1 readings are usually closely watched by forex traders, so make sure you’re also tuned in to your newswires for any significant hits or misses on the report!

See also:

London Session Recap

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