U.S. Session Forex Recap – May 20, 2015

  • US building permits: 1.14M vs. 1.06M expected, 1.04M previous
  • US housing starts: 1.14M vs. 1.02M expected, 0.94M previous
  • EUR still hit by EZ officials’ comments
  • Comdolls hit by lower commodity prices, strong dollar
  • AU Westpac consumer confidence data on tap
  • Japan’s preliminary GDP report out at 12:50 am GMT

It was another good day to be long on the Greenback with forex traders pricing in weak reports from other major economies.

It also helped that data from Uncle Sam, though not usually a market-mover, printed strong enough to attract currency bulls. Housing starts in the U.S. surged to its highest level in seven years and hinted at a recovery in the housing industry and future construction-related jobs for the economy.

USD/JPY popped up by 60 pips (+0.50%) to 120.73 while USD/CHF saw a 76-pip rise (+0.82%) to .9377.

U.S. traders got the memo of EUR weakness and pushed the common currency lower at the start of the session. As I mentioned in my London session recap, the euro was hit by a triple roundhouse kick of ECB’s Benoit Coeure saying that the ECB is ready to front-load QE in May and June to combat seasonal lulls; ECB Government Council’s Christian Noyer hinting that the ECB is ready to step up its QE game, and EU Commissioner Juncker saying that there are no chances of a deal being reached at their meeting with Greek officials in Riga.

EUR/USD fell by another 42 pips (-0.38%) to 1.1148, EUR/GBP slipped by another 32 pips (-0.44%) to .7190, and EUR/JPY fell to its London session lows before settling at 134.59.

Unlike the euro, the pound managed to recover some of its London session losses despite the lack of fresh catalyst for the currency.

Last but definitely not the least is the comdolls, which traded on dollar strength and spots of weaknesses in commodity prices. Gold prices ended its five-session rally on dollar strength and ended the day down 1.7% to $1,206.70. Even oil prices danced to the tune of dollar strength and a bit of oil glut worries, which is probably why U.S. crude oil fell more than 3% yesterday.

Not surprisingly, AUD/USD slid by 61 pips (-0.77%) to .7915, NZD/USD saw a 68-pip decline (-0.92%) to .7340, and USD/CAD popped up by 59 pips (+0.49%) to 1.2232.

Will Asian session forex traders extend the dollar’s gains today? Australia has just published a strong Westpac consumer confidence report while Japan’s GDP numbers also came in better-than-expected. With positive reports peppering the Asian session, y’all better watch out for possible risk-friendly moves over the next couple of hours!

See also:

London Session Recap

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

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!