U.S. Session Forex Recap – June 5, 2015

  • US initial jobless claims: 276K vs. 278K expected, 284K previous
  • US Challenger job cuts: -22.5% vs. 52.8% previous
  • US revised non-farm productivity (q/q): -3.1% vs. -2.8% expected, -1.9% previous
  • US revised unit labor costs (q/q): 6.7% vs. 5.8% expected, 5.0% previous
  • CA IVEY PMI: 62.3 vs. 55.0 expected, 58.1 previous
  • Japan leading indicators due today

Forex price action showed intraday profit-taking patterns yesterday, thanks to traders squaring their positions ahead of today’s NFP report.

The dollar gained pips against most of its counterparts yesterday, partly due to slightly stronger-than-expected U.S. reports and partly because of profit-taking ahead of the NFP report. Investors paid attention to the initial jobless claims, which came in slightly better-than-expected, for clues to today’s employment reports.

USD/JPY jumped 35 pips (+0.28%) to 124.68 before closing at 124.35 while USD/CHF also inched 16 pips higher (+0.17%) to .9332.

The European currencies felt the dollar bulls’ wrath as optimism during the European session waned. If you recall, the euro and pound both traded higher even though Greece had rejected the European officials’ proposal and asked for this week’s payments to be bundled with its payables by the end of the month.

EUR/USD encountered resistance at the 1.1370 area and fell by 91 pips (-0.80%) throughout the session. Ditto for GBP/USD, which hit a ceiling just below 1.5450 and closed 25 pips lower (-0.16%) than its session open price.

The comdolls also lost pips to the dollar with lower commodity prices contributing to their weaknesses. The Aussie was still feeling the effects of disappointing reports during the Asian session while the Kiwi traded in tandem with the Aussie.

AUD/USD dropped by another 69 pips (-0.89%) to .7682 while NZD/USD also lost 33 pips (-0.46%) to .7120. Meanwhile, the Loonie failed to gain support from a better-than-expected IVEY PMI report. USD/CAD briefly slipped at the report’s release, but soon bowed down to buyers with its 58-pip trek (+0.47%) to 1.2503.

Will we see more dollar gains today? Japan’s preliminary leading indicators report (expected at 107.2 vs. 106.0 previous) is the only one on the docket during the Asian session. Early forex trading sessions on NFP Fridays tend to show tight ranges though, so I wouldn’t bet on the report making any waves. In fact, we probably won’t see any significant price action until the monster report is released or we see any developments in the Greek saga.

See also:

London Session Recap

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