U.S. Session Forex Recap – July 10, 2015

  • CA housing starts: 203K vs. 190K expected, 197K previous
  • CA new houses price index: 0.2% vs. 0.1% expected and previous
  • US initial jobless claims: 297K vs. 275K expected, 282K previous
  • Greece submits reform package proposal to Brussels
  • AU home loans, Japanese consumer confidence reports on tap

Major currencies were all over the place during the U.S. session, as forex traders priced in their risk sentiment and a couple of economic reports.

The dollar started the trading session on a strong note despite the release of slightly worse-than-expected U.S. initial jobless claims data. One possible explanation is that U.S. traders started their day pricing in the lack of developments in Greece. Concerns over China might have also factored in despite a positive day for both Chinese and Japanese markets.

Fortunately for risk takers, appetite for high-yielding currencies improved later in the day. It might have helped that commodity prices saw improvements with both gold and oil ending the day higher than their open prices.

The see-saw price action can be seen on the majors with USD/JPY slipping by 18 pips (-0.15%) to 121.30, USD/CHF inching 16 pips lower (-0.17%) to .9483, and GBP/USD falling to a session low of 1.5344 before capping the day at 1.5378.

Even the comdolls showed the lack of one-directional moves against the dollar. AUD/USD fell by 27 pips to an intraday low of .7424 before closing at .7448 while NZD/USD also slipped by 17 pips to .6718 before capping the session back to its open price. The Loonie, which found little support from Canada’s better-than-expected data and a recovery in oil prices, still ended the session 24 pips higher (+0.19%) at 1.2707.

Another story of the hour is Greece finally submitting a reform package proposal to Brussels and the Greek Parliament. Word around the hood is that the proposal, set to be approved by the Parliament today and by the Eurogroup officials over the weekend, requires more money than the initial estimates and contains debt restructuring proposals along with surplus and VAT targets.

Euro bulls were all over Greece’s proposal as they pushed EUR/USD from its 1.1000 low to its 1.1025 closing price. Ditto for EUR/JPY which climbed by 43 pips (+0.32%) from its session low an closed at 133.74.

Asian session forex traders don’t have a lot on their plate today with only Australia’s home loans data on tap at 1:30 am GMT and Japan’s consumer confidence report due at 5:00 am GMT. Market players are expecting a 3.3% decline in housing loans, so watch out for possible comdoll weakness during the session. Of course, you should also watch closely for other news that might affect risk appetite.

Good luck!

See also:

London Session Recap

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