U.S. Session Forex Recap – May 21, 2015

  • FOMC: June rate hike unlikely, but not out of the table
  • CA wholesale sales: 0.8% vs. 0.9% expected, -0.4% previous
  • Chinese HSBC flash manufacturing PMI on tap

Ho-hum. Volatility was in short supply for forex traders, thanks to the Fed not giving anything new in its latest FOMC statement.

Forex price action was muted ahead of the event, probably on speculations that the Fed would hint at when it’s planning on raising its rates. Unfortunately for interest rate junkies, Janet Yellen and her gang merely explained that the data that they have is “unlikely” to cause a rate hike in June, and that any rate hike this year will be decided on a “meeting-by-meeting” basis. Another thing to note is that most of them believe that the economic weaknesses seen in Q1 2015 is unlikely to persist.

The Greenback lost a few pips to its counterparts at the news of non-rate hike in June, but eventually found buyers and then ranged tightly for the rest of the trading session.

EUR/USD popped up to an intraday high of 1.1142 before settling back to 1.1108 while USD/JPY climbed a decent 32 pips (+0.27%) to 121.22. Other pairs, like GBP/USD and USD/CHF ranged tightly with the former staying around the 1.5550 handle while the latter lollygagged just below the .9400 area.

Even the comdolls failed to get any significant action, thanks in part to a bit of lull in commodity prices. AUD/USD hit a high of .7915 before closing at .7886 while NZD/USD recovered from a low of .7282 before closing at .7316. USD/CAD, which also traded on a slightly stronger wholesale sales report, inched 16 pips lower (-0.13%) to 1.2195.

Let’s see if Asian session forex traders can get the party started for volatility today. China is set to release its HSBC flash manufacturing PMI report. The data is expected to print at 49.3 against last month’s 48.9 figure. Keep in mind that a reading above the 50.0 mark hints at industry expansion.

Since China is one of Australia and New Zealand’s biggest trading partners, a reading significantly higher or lower than market estimates could affect risk-taking and comdoll trading for the next couple of hours. Make sure you stick around and watch out for any updates!

See also:

London Session Recap

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