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

  • CA building permits: -14.5% vs. -5.0% expected, 12.1% previous
  • US consumer credit: 16.1B USD vs.18.5B USD expected, 21.4B USD previous
  • FOMC minutes shows mixed interest rate biases
  • NYSE temporarily suspended trading due to technical issues
  • Japan core machinery orders: 0.6% vs. -4.8% expected, 3.8% previous
  • AU employment numbers on tap

Look out belooooow! The dollar was hit by a one-two punch of weak U.S. data and a bit of risk-taking, so forex traders got busy buying high-yielding currencies throughout the session.

The dollar started the session on a weak note as investors who participated in the risk aversion in the earlier trading sessions squared off their forex trades. If you recall, market players had been pricing in more uncertainties over China’s markets and Greece’s lack of development in reaching a deal with its creditors.

Luckily for the dollar bears, the FOMC minutes made it easy for traders to take profits on their risk aversion trades. One of the major takeaways from the report is that while the members are seeing economic progress, they don’t think the numbers are enough to warrant a rate hike just yet. Consensus was also in short supply with some members supporting immediate (but gradual) rate hikes while others are warning against “premature” interest rate increases.

Dollar bears partied in the pip streets with EUR/USD jumping by 44 pips (+0.40%) to 1.1070 and USD/CHF sliding by 40 pips (-0.42%) to .9456. Even the comdolls found some support with AUD/USD and USD/CAD barely moving from their session open prices despite worries over China’s growth while NZD/USD popped up by 25 pips (+0.37%) to .6730.

The other low-yielding currency of note was the yen, which made pips against most of its counterparts. Guess the profit-taking from the earlier sessions’ risk aversion was concentrated on the dollar, huh? USD/JPY was under the spotlight with its 76-pip drop (-0.63%) to 120.64 while EUR/JPY also saw a 32-pip slip (-0.24%) to 133.55 and AUD/JPY fell by 58 pips (-0.64%) to 89.58.

Lat but not the least is the pound, which found just a bit of support after getting pummeled in the earlier trading sessions.

GBP/USD inched 19 pips higher (+0.12%) to 1.5360, GBP/JPY still dropped by 131 pips (-0.70%) to 185.41, and EUR/GBP popped up by 37 pips (+0.52%) to .7207.

Asian session forex traders have a big event coming their way with Australia printing its employment numbers at 1:30 am GMT. Market players are expecting the unemployment rate to rise from 6.0% to 6.1% while a net of 2,100 workers are expected to have lost jobs, down from last month’s 42,000 uptick in job finds.

Significant upside or downside surprises could dictate risk appetite for the rest of the comdolls, so make sure you keep your eyes glued to the tube when the numbers are released!

See also:

London Session Recap

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