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

  • CA retail sales: 1.0% vs. 0.6% expected, -0.1% previous
  • CA core retail sales: 0.9% vs. 0.8% expected, -0.5% previous
  • EU flash consumer sentiment: -7.1 vs. -5.8 expected, -5.6 previous
  • US initial jobless claims: 255K vs. 278K expected, 281K previous
  • US leading indicators: 0.6% vs. 0.3% expected, 0.8% previous
  • NZ trade balance, China’s flash manufacturing PMI on tap

Forex price action was as mixed as the Tay-Tay and Nicki Minaj’s Twitter war reactions, as traders took in news releases and did some profit-taking.

The dollar struggled to extend its gains despite the release of strong economic data from Uncle Sam. Not only did the leading indicator exceed market expectations, but the initial jobless claims also dropped to its lowest level since 1973. Unfortunately for the bulls, the Greenback is sitting at overbought levels and is barely attracting any more buyers.

USD/JPY lollygagged just below the 124.00 major psychological level while EUR/USD hit a resistance at 1.1000. USD/CHF was an exception though, as a sharp rise in EUR/CHF took the currency pair 39 pips (+0.41%) higher to .9595.

The pound’s price action was also noted as it continued to take hits following a soft U.K. retail sales release. GBP/USD dropped by another 91 pips (-0.58%) to 1.5523 while GBP/JPY plunged by 109 pips (-0.56%) to 192.19. Even EUR/GBP popped up by 37 pips (-0.53%) to .7083.

Last but not the least are the comdolls, which all gave pips against most of its counterparts. The Aussie was weighed down by gold prices hitting its lowest levels in years while the Kiwi used up its breathing room and continued its decline after the RBNZ cut its interest rates from 3.25% to 3.0%.

AUD/USD encountered resistance at the .7400 area and fell by 54 pips (-0.73%) to .7357 while AUD/JPY dropped by another 66 pips (-0.72%) to 91.08. Meanwhile, NZD/USD plunged by 60 pips (-0.90%) to .6615 and NZD/JPY dropped by 74 pips (-0.90%) to 81.90.

The Loonie could have had a fighting chance if not for the continued worries over global oil stockpiles. Yesterday we saw Canada’s retail sales grow by 1.0% when market players had only been expecting a 0.6% gain. Unfortunately for the Loonie, risk aversion won and boosted USD/CAD 67 pips (+0.52%) to 1.3039 while CAD/JPY fell by 47 pips (-0.49%) to 94.96.

Asian session traders have a couple of potential heavy hitters coming their way with New Zealand’s trade balance coming in below market expectations and China’s HSBC flash manufacturing due at 1:45 am GMT. Market players are expecting a reading of 49.7 against last month’s 49.4 release. Watch the newswires closely for possible upside or downside surprises! It just might dictate risk sentiment for the next couple of trading sessions.

Good luck and good trading!

See also:

London Session Recap

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