U.S. Session Forex Recap – June 24, 2015

  • US durable goods orders: -1.8% vs. -1.0% expected, -1.5% previous
  • US core durable goods orders: 0.5% vs. 0.5% expected, -0.3% previous
  • US flash manufacturing PMI: 53.4 vs. 54.1 expected, 54.0 previous
  • US new home sales: 0.55M vs. 0.52M expected, 0.53M previous
  • US Richmond manufacturing index: 6 vs. 3 expected, 1 previous
  • USD gains across the board
  • BOJ meeting minutes, Chinese leading index on tap

The Greenback was king of pips in yesterday’s U.S. session trading, as forex traders priced in developments in Greece and a bit of risk aversion.

Yesterday we saw worse-than-expected reports from the U.S., starting with the durable goods orders numbers. Data revealed that both the headline and core numbers disappointed market expectations, with orders running at a disappointing pace and shipments coming in even lower after its downward revision last month.

Even the flash manufacturing PMI missed expectations with its 53.4 reading against its previous 54.0 print. The silver lining was the new home sales, which came in slightly stronger than market expectations.

The weak durable goods reports wasn’t enough to rain on the dollar bulls’ parade though. More specifically, the dollar was on a tear against major counterparts like the euro, yen, pound, and franc. Some market players point to possible risk aversion due to the lack of solid deals in Greece. Others point to profit-taking and possibly a back-to-fundamentals scenario with the Greek debt drama nearly out of the way reminding us of the Fed’s rate hikes schedule.

Of course, it also didn’t hurt that Fed member Jerome Powell hinted at two possible rate hikes this year, saying that there’s a 50% chance that he’ll support rate hikes in September and December. In any case, yesterday’s mix of U.S. data and optimism for a Greek deal turned out to be bullish for the dollar.

EUR/USD fell by 37 pips (-0.33%) to 1.1165 while GBP/USD slid by another 44 pips (-0.28%) to 1.5729. USD/JPY also got some action with a 9-pip rise (+0.07%) to 123.91 after hitting a high of 124.19 while USD/CHF inched 8 pips higher (+0.09%) to .9343 after reaching an intraday high of .9388.

The Greenback wasn’t as lucky against the comdolls though. Thanks to a bit of risk appetite in the commodities and equities markets, high-yielding bets like the comdolls gained a few pips on the dollar.

AUD/USD popped up by 26 pips (+0.34%) to .7734 while NZD/USD rose by 8 pips (+0.12%) to .6848 and USD/CAD inched 13 pips lower (-0.11%) to 1.2332.

Let’s see if Asian session forex traders are up to extending the comdolls’ gains. We don’t have a lot of reports on the docket save for the BOJ’s meeting minutes due at 11:50 pm GMT, followed by China’s leading index report at 2:00 am GMT. These reports don’t usually cause sustained moves on the Asian currencies, but keep an eye out in case market players are looking for catalysts to extend yesterday’s moves!

See also:

London Session Recap

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