U.S. Session Forex Recap – May 22, 2015

  • US initial jobless claims: 274K vs. 270K expected, 264K previous
  • US preliminary Markit PMI: 53.8 vs. 54.5 expected, 54.1 previous
  • US April existing home sales: 5.04M vs. 5.23M expected, 5.21M previous
  • US Philly Fed manufacturing index: 6.7 vs. 8.0 expected, 7.5 previous
  • US leading indicators: 0.7% vs. 0.3% expected, 0.4% previous

Forex price action was as exciting as watching water boil, as traders barely reacted to news reports released from the U.S.

It seemed like traders settled down after the excitement over euro zone reports because they barely paid attention to yesterday’s U.S. data. Aside from the reports just missing their market estimates, another possible reason is that we’ve just heard of the Fed’s short-term interest rate bias. If you recall, the FOMC statement revealed that a June rate hike is unlikely, and that future rate hikes will be considered on a month-to-month basis.

EUR/USD found support at the 1.1100 area and capped the day at 1.1115 while USD/CHF popped up by 26 pips (+0.28%) to .9365 and USD/JPY slipped by 11 pips (-0.09%) to 120.99. GBP/USD, which advanced on the back of stronger-than-expected U.K. retail sales, steadied just above the 1.5650 handle.

The comdolls had a better day against the dollar. AUD/USD fell to an intraday low of .7867 before going back up to its .7891 closing price, while NZD/USD shot up by 31 pips (+0.42%) to .7334 despite weaknesses in gold prices. Meanwhile, USD/CAD, which popped up to an intraday high of 1.2243 at the start of the session, fell back to 1.2208 when oil prices started showing strength.

Today’s another potentially big day for comdoll traders with China scheduled to print its CB leading index report at 2:00 am GMT, followed by the BOJ’s monetary policy statement some time during the Asian forex trading session.

Analysts aren’t expecting anything new from the central bank, but keep an eye out for any remarks over Japan’s inflation (especially its reaction to lower oil prices) or economic performance, aight? We never know when Kuroda and his gang decide to hint at their future policy changes!

See also:

London Session Recap

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