U.S. Session Forex Recap – August 28, 2015

  • US preliminary GDP: 3.7% vs. 3.2% expected, 2.3% previous
  • US core PCE price index remains at 1.8% as expected
  • US initial jobless claims: 271K vs. 274K expected, 277K previous
  • US pending home sales: 0.5% vs. 1.0% expected, -1.7% previous
  • US Jackson Hole Symposium starts today
  • Data dump from Japan on tap

The dollar’s forex price action was a mixed bag of nuts, as strong U.S. reports got mixed in with risk appetite. How did your favorite currencies fare?

The dollar started the session on the green side of the charts, as Uncle Sam’s second GDP reading got revised higher. Growth for Q2 2015 showed an annualized rate of 3.7%, higher than the expected 3.2% uptick and the previous 2.3% growth.

Though the report isn’t exactly forward-looking, the better-than-expected figures helped ease concerns that the Fed won’t be raising its rates this year. Of course, it might have also helped that jobless claims slipped a bit and that pending home sales improved from the previous month.

USD/JPY popped up by another 82 pips (+0.68%) to 121.01 while USD/CHF also shot up by 125 pips (1.31%) to .9663. The European currencies didn’t fare any better with EUR/USD sliding by 61 pips (-0.54%) to 1.1245 and GBP/USD falling by 48 pips (-0.31%) to 1.5415.

The comdolls also got on the risk appetite train, thanks in part to the recovery in China’s equities market. AUD/USD popped up by 22 pips (+0.31%) to .7165 despite the slip in gold prices while NZD/USD also inched a pip from its session open price.

The Loonie was the fairest among the comdolls, as rising oil prices boosted appetite for the oil-related currency. Brent crude oil rocketed by more than 10% to $47.56 per barrel while U.S. crude oil popped up by 10.3% to $42.56 per barrel. Talk about making a comeback!

USD/CAD fell by another 10 pips (-0.08%) to 1.3218 while CAD/JPY rose by 68 pips (+0.75%) to 91.56 and GBP/CAD fell by 92 pips (-0.62%) to 1.4863.

Will risk appetite extend to today’s Asian session forex trading? Japan is set to unleash a couple of tier 1 reports including its unemployment rate, national and Tokyo CPI figures, and retail sales and household spending numbers.

Market players are expecting the same growth figures, if not slightly higher, from the majority of the reports. Will the Land of the Rising Sun meet investor expectations? Significantly lower or higher results could affect risk sentiment for the next couple of hours, so make sure you stick around to adjust your open trades if necessary!

See also:

London Session Recap

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