U.S. Session Forex Recap – May 28, 2015

  • BOC leaves interest rates unchanged at 0.75%
  • USD/JPY tests 124.00 barrier
  • EUR pops up on “staff-level accord” rumors from Greece
  • Japan retail sales, AU quarterly private capital expenditure on tap

Economic data was light during the U.S. session, but that didn’t stop forex traders from partying in the streets!

Greece was once again under the spotlight when rumors of Greek officials drafting a staff-level accord with its creditors caught fire and spread appetite for high-yielding assets. The Greek official cited in the news said that the staff-level agreement will not require a cut in pensions and would involve long-term plans. European officials were quick to throw water to the fire, but not before the bulls have already gained their momentum.

EUR/USD caught a nice 40-pip move (+0.37%) throughout the session while EUR/JPY also popped up by 54 pip (+0.40%) to 134.91 and EUR/GBP inched 36 pips higher (+0.51%) to .7103.

Even the comdolls benefited from the risk-friendly environment. Even though gold and oil prices took more hits, AUD/USD managed to climb from its .7692 intraday low and finished the session 22 pips higher (+0.29%) to .7731 while USD/CAD hit an intraday resistance at 1.2491 and closed near its session open price.

USD/JPY was also a headline maker during the session when it tested (and temporarily broke) the 124.00 barrier. There were no reports from the U.S. yesterday, but the break in technical resistance was enough to get investor attention.

Last but definitely not the least is the Loonie, which barely reacted to the BOC’s decision to keep its rates unchanged at 0.75%. In its release, the central bank attributed the weak inflation to lower energy prices and said that it expects growth to return to “solid growth in the second quarter.”

The Loonie didn’t show much reaction to the news, probably because market players weren’t really expecting fireworks from the BOC. CAD/JPY just inched 7 pips higher (+0.07%) to 99.33 while GBP/CAD barely moved from the .7830 area.

Will Asian session forex traders extend the risk-friendly theme today? Japan has just released its worse-than-expected retail sales numbers, but so far it hasn’t affected the yen’s price action. Maybe Australia’s quarterly private expenditure report at 1:00 am GMT could nudge volatility higher. Market players are expecting a 2.2% decline like last quarter, but a deeper decrease could knock the Aussie a few pips back during the session.

Good luck and good trading!

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!