U.S. Session Forex Recap – June 9, 2015

  • CA housing starts: 201.7K vs. 185K expected, 183.3K previous
  • CA building permits: 11.6% vs. -5.0% expected, 13.6% previous
  • NZ quarterly manufacturing sales: -2.8% vs. -1.0% previous
  • UK annualized BRC retail sales monitor: 0.0% vs. -2.4% previous
  • Obama not worried about a strong dollar
  • AU ANZ job ads, NAB business confidence and home loans data on tap
  • China inflation numbers due today

What a wipeout! Yesterday the Greenback managed to erase most of its NFP gains despite the lack of major forex catalysts. What’s up with that?!

There were no major reports from Uncle Sam yesterday, but the dollar turned out to be one of the biggest movers. Some analysts point to profit-taking after the NFP report while others point to a bit of risk-taking following a strong European session for the high-yielding currencies.

The euro took advantage of the dollar weakness with its whopping 129-pip jump (+1.16%) to 1.1287 while GBP/USD also got some action with its 88-pip trek (+0.58%) to 1.5344. The dollar also gave up pips to its low-yielding counterparts with USD/JPY dropping 87 pips lower (-0.68%) to 124.41 while USD/CHF also slid by 92 pips (-0.98%) to .9287.

Comdoll trading wasn’t as one-directional. Both the Aussie and Kiwi joined the dollar-selling bandwagon with AUD/USD rising by 61 pips (+0.80%) to .7705 and NZD/USD jumping by 72 pips (+1.02%) to .7147.

Strangely enough, it was the Loonie that failed to make any headways against the dollar. Canada printed better-than-expected housing starts and building permits yesterday and, between yesterday’s positive reports and last Friday’s strong employment numbers, the Canadian dollar should’ve seen some gains.

Instead, USD/CAD ended the trading session at 1.2398, only 36 pips lower (-0.29%) than its session open price after hitting a session high at 1.2454. Even CAD/JPY slipped by 41 pips (-0.41%) to 100.35 and EUR/CAD popped up by 120 pips (+0.87%) to 1.3994.

Will we see more dollar gains today? Australia is printing a set of tier 2 reports, starting with the ANZ job ads (0.0% vs. 2.5% previous), NAB business confidence (7 vs. 3 previous) , and home loans report (1.0% vs. -2.0% expected).

China will also be under the spotlight with its inflation reports out at 1:30 am GMT. Market players are expecting a 1.3% annualized gain (from 1.5% last month) while the monthly figure is expected to decline by 4.6% (like last month). Any major disappointment in the report could add to yesterday’s weakness in Chinese imports and fuel rumors of more stimulus from China.

Good luck and good trading!

See also:

London Session Recap

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