U.S. Session Forex Recap – May 18, 2015

  • US Empire State manufacturing index: 3.1 vs. 5.0 expected, -1.2 previous
  • US industrial production: -0.3% vs. 0.1% expected, -0.3% previous
  • US preliminary UoM consumer sentiment: 88.6 vs. 95.8 expected, 95.9 previous
  • US capacity utilization: 78.2% vs. 78.3% expected, 78.6% previous
  • CA manufacturing sales: 2.9% vs. 1.2% expected, -2.2% previous
  • CA foreign securities purchase: 22.47B CAD vs. 7.23B CAD expected, 9.35B CAD previous
  • Japan data dump scheduled today

Hit by weak data again! Just when we thought forex traders are done punishing the dollar, a slew of weak data from Uncle Sam dragged the low-yielding currency against its counterparts.

There were a couple of reports from Uncle Sam last Friday, but market players had their eyes on the preliminary reading of the UoM consumer sentiment report. The data came in at 88.6, much lower than the 95.8 figure that many had expected. For forex newbies out there, the report showed weakness in consumer activity and supports arguments that the Fed might delay its rate hike this year.

Not surprisingly, USD/JPY slipped by 57 pips (-0.48%) to 119.33, USD/CHF hit a high of .9255 before slipping back to .9158, and GBP/USD, which found technical resistance in early London trading, jumped by 26 pips (+0.19%) to 1.5736.

EUR/USD was one of the biggest movers as the euro bulls took advantage of the overall dollar weakness. Heck, the pair registered a whopping 115-pip increase (+1.02%) to 1.1448 throughout the session! Other euro pairs followed with EUR/GBP climbing by 60 pips (+0.83%) to .8040, EUR/JPY jumping by 72 pips (+0.53%) to 136.61, and EUR/CHF shooting up by 24 pips (+0.23%) to 1.0484.

Comdoll price action wasn’t as consistent. The Aussie and Kiwi, both hurt by profit-taking during the London session, climbed by 36 pips (+0.45%) to .8040 and 55 pips (+0.61%) to .7483 respectively. Meanwhile, the Loonie was hit by lower oil prices. USD/CAD popped up to 1.2067 before ending the day at 1.2021.

Today’s a pretty busy day for Asian session forex traders with Japan printing its key machinery orders numbers at 11:50 pm GMT, followed by Australia’s new motor vehicle sales data at 1:30 am GMT. Then, Japan will be back under the spotlight with its tertiary activity index, capacity utilization, and industrial production numbers printed out at 4:30 am GMT.

Individually, these reports usually don’t have sustained impact on the Asian currencies. Any major hits or misses though, and we might hear speculations of the BOJ possibly making changes to its stimulus plans. Best listen around and watch your news wires for any news that might affect risk sentiment and currency price action!

Good luck and good trading this week!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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