U.S. Session Forex Recap – August 17, 2015

  • US PPI: 0.2% vs. 0.1% expected, 0.4% previous
  • US core PPI: 0.3% vs. 0.1% expected, 0.3% previous
  • US industrial production: 0.6% vs. 0.3% expected, 0.1% in June
  • US preliminary UoM consumer sentiment: 92.9 vs. 93.5 expected, 93.1 in June
  • CA manufacturing sales: 1.2% vs. 2.7% expected, 0.2% in June
  • CA capacity utilization: 78.0% as expected vs. 77.7% in June
  • Japan’s preliminary GDP contracts by 0.4% vs. 0.5% contraction expected, 1.0% growth previous

Forex trading lacked a common theme during the U.S. session, as traders priced in mixed U.S. reports and took profits ahead of the weekend.

One of the biggest stories of the day was the euro zone Finance Ministers approving Greece’s third bailout package worth 86 billion EUR ($96B). Germany is set to vote on its participation on Wednesday and, if approved, would unlock a total of 26 billion EUR including 10 billion EUR to recapitalize Greece’s banks.

The news didn’t help the euro much though, probably because market players are still waiting for Germany’s approval and the IMF’s participation in the program. Either that or they recognize a can being kicked down the road when they see one.

In any case, EUR/USD hit a high just below the 1.1200 area and dropped by 62 pips (-0.56%) to 1.1109 throughout the session. EUR/JPY also suffered a 58-pip (-0.42%) decline to 138.08 while EUR/GBP took a 48-pip (-0.67%) trip down the charts to .7098.

The dollar was also under the spotlight last Friday though it had mixed results against its counterparts. Uncle Sam’s PPI reports printed just above market expectations though a disappointing UoM consumer sentiment release limited the Greenback’s gains and encouraged end-of-week profit-taking.

USD/JPY inched 17 pips higher (+0.14%) to 124.29 while USD/CHF popped up by 20 pips (+0.21%) to .9762 and GBP/USD inched 14 pips higher (+0.09%) to 1.5650. It also showed mixed results against the comdolls with AUD/USD rising by 15 pips (+0.20%) to .7375 and NZD/USD dropping by 20 pips (-0.31%) to .6541.

Last but not the least is the Loonie, which lost against its lower-yielding counterparts but gained on the European currencies. Last Friday’s reports showed Canada’s manufacturing production missing growth expectations with only a 1.2% read when analysts had been expecting a 2.7% uptick. It also didn’t help that oil prices resumed their declines last Friday.

USD/CAD popped up by 56 pips (+0.43%) throughout the session and CAD/JPY slipped by 28 pips (-0.29%) to 94.93. Meanwhile, GBP/CAD fell by 24 pips (-0.14%) to 1.7813 and EUR/CAD dipped by 18 pips (-0.12%) to 1.4546.

Will we see more volatility this week? Japan has fired the first salvo of major reports with its preliminary GDP reading. The numbers came in mostly within market expectations, which is probably why the major yen crosses are showing limited reactions. There won’t be any more major news on tap over the next couple of hours, so take the time to mark your charts and spot possible trade ideas for the week!

See also:

London Session Recap

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