U.S. Session Forex Recap – July 22, 2015

  • Dollar falls across the board on profit-taking
  • S&P raises Greece’s credit rating two notches higher from CCC- to CCC+
  • US industrial production rose less than expected
  • US 10-year Treasury yields down by 3.1 bps to 2.342%
  • AU quarterly CPI, RBA Gov Stevens’ speech on tap

Geronimoooo!!! Forex volatility hunters partied in the streets as the dollar fell across the board. What’s up with that?!

Yesterday the dollar was hit by a strong round of profit-taking as the Greenback bulls used the lack of economic releases to book some profits. It might have also helped their decision that concerns over Greece and China have somewhat subsided and U.S. equities took some hits.

USD/JPY was one of the most notable with its 41-pip decline (-0.33%) to 123.93 while EUR/USD had its best one-day rally in a while with a 61-pip pop to 1.0935. USD/CHF also participated in the dollar selloff with a 20-pip dip (-0.21%) to .9586.

Even the comdolls gained a couple on the dollar. AUD/USD shrugged off the RBA’s dovish comments during the Asian session with a 42-pip increase to .7420 while USD/CAD, despite the continued decline in oil prices, slipped by 36 pips (-0.28%) to 1.2948.

The Kiwi’s moves were also noted after it popped higher across the board. Like the dollar’s price action, analysts are pointing to profit-taking from the comdoll’s oversold conditions as possible reason for the strong moves.

NZD/USD rose by 30 pips (+0.45%) to .6635 while NZD/JPY inched 11 pips higher (+0.13%) after hitting an intraday high of 82.52. Heck, even GBP/NZD plunged by 115 pips (-0.49%) to 2.3441!

Will yesterday’s volatility extend to today’s trading? Asian session forex traders have a major potential catalyst coming their way with Australia’s quarterly CPI up for release at 1:30 am GMT. Market players are expecting a 0.8% uptick after rising by 0.2% in the previous quarter while the annualized rate is estimated to have risen by 1.7% against its 1.3% uptick last time.

RBA Governor Stevens is also set to take the spotlight with a speech in Sydney at 3:05 am GMT. Recall that the RBA recently said that the Aussie needs more depreciation. Watch out for any hints of potential action from the central bank!

See also:

London Session Recap

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