- US building permits: 1.28M vs. 1.1M expected, 1.14M previous
- US housing starts: 1.04M vs. 1.09M expected 1.17M previous
- CA foreign securities purchases: 12.94B CAD vs. 5.03B CAD expected, 22.56B CAD previous
- NZ global dairy trade prices: -1.3% vs. -4.3% previous
- NZ currency account balance, Japan trade balance, AU Westpac MI leading index reports due today
Forex price action was mixed during the U.S. session, as traders priced in news from other major economies and positioned themselves ahead of the FOMC statement.
Uncle Sam printed housing numbers yesterday, but market players were more interested in the European region and the upcoming FOMC statement.
USD/JPY was on a tight range just below 123.50 while USD/CHF ended the session only 2 pips higher than its open price.
The comdolls saw more action against the Greenback. Despite the RBA’s warnings of a weaker Aussie, the comdoll actually spiked by 28 pips (+0.36%) before capping the session back to its open price. Even NZD/USD went up by 19 pips (+0.27%) to .7002 before it closed back at .6989.
Last but not the least is the Loonie, which ended the U.S. session 25 pips higher (+0.20%) against the dollar on a bit of dollar weakness and a 50-cent uptick in crude oil prices.
As with yesterday’s U.S. trading session, it was the European currencies that caught more attention from market players. The euro failed to recover from the impact of weaker-than-expected German ZEW reports in early London trading.
EUR/USD hit an intraday low of 1.1205 before closing at 1.1240 while EUR/JPY barely moved from the 138.70 area. Ditto for EUR/GBP, which didn’t inch above the .7185 intraday low area.
The pound presented another story. The U.K.’s currency gained across the board with only positioning ahead of this week’s major U.K. reports as possible catalyst for the moves. GBP/USD climbed by another 17 pips (+0.11%) to 1.5641 while GBP/JPY inched 5 pips higher (+0.02%) to 192.98 and GBP/AUD rose by 21 pips (+0.10%) to 2.0200.
Let’s see if Asian session forex traders support more volatility among the major currencies. There are a couple of potential market movers on the docket including New Zealand’s current account report at 10:45 pm GMT, followed by Japan’s trade balance data at 11:50 pm GMT. Last but not the least is Australia’s MI leading index scheduled at 12:30 am GMT. These reports don’t usually cause sustained reactions on their respective currencies, so keep an eye out for possible short-term trades in case we see significant surprises in these reports.
Good luck and good trading!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!