U.S. Session Forex Recap – September 15, 2015

  • Malcolm Turnbull replaces Tony Abbott as Australia’s Prime Minister
  • BOE’s Weale: “Interest rates must rise ‘relatively soon’.”
  • AU new motor vehicle on tap
  • RBA meeting minutes, BOJ’s policy decision scheduled today

Forex trading was a mixed bag of nuts, as a lack of major news reports inspired profit-taking in some pairs and risk-taking in others.

The European currencies saw more action than the Greenback during the U.S. session. The euro lost most of its early London session gains following a stronger-than-expected industrial production report. Ditto for the pound, which also lost momentum before Bank of England (BOE) member Martin Weale saved the day by hinting that interest rates must rise “relatively soon.

EUR/USD ended the session unchanged at 1.1324 after dipping to an intraday low of 1.1284 while EUR/JPY fell by 27 pips (-0.20%) to 136.06 after slipping to 135.50.

GBP/USD also saw a decline to 1.5373 before capping the day at 1.5430 while GBP/JPY hit an intraday bottom at 184.62 before closing at 185.40. Meanwhile, EUR/GBP steadied just below the .7350 area.

Even the dollar had a bad day, especially against its lower-yielding counterparts. As I’ve mentioned in my previous updates, forex market players might be taking off their dollar-related trades ahead of the Fed’s monetary policy decision this week. Because there’s no glaring market census on the Fed’s decision, the announcement could catapult dollar pairs in either direction at the time of the release. Better safe than stopped out, right?

USD/JPY fell by 16 pips (-0.19%) to 120.16 after dropping to 119.85 while USD/CHF also saw a 28-pip (-0.29%) move lower to .9680.

Last but not the least are the comdolls, which showed mixed results throughout the session. The Aussie was king of pips in yesterday’s trading as investors priced in a bit of recovery in gold prices, Tony Abbott getting replaced by Malcolm Turnbull as Australia’s Prime Minister, and tons of analysts calling a bottom on the high-yielding currency.

Meanwhile, the Loonie was understandably weak as oil settled below $44 per barrel after OPEC said that the shale boom is over and lowered demand forecasts for oil.

AUD/USD inched 12 pips higher (+0.17%) to .7133 while EUR/AUD dropped by 26 pips (-0.16%) to 1.5876. USD/CAD slid by 5 pips (-0.04%) to 1.3257 and CAD/JPY dipped by 14 pips (-0.15%) to 90.64.

Today’s a big day for Asian session forex traders, as both the RBA and the BOJ are releasing potential market-moving statements. The RBA is set to print its meeting minutes at 1:30 am GMT. The central bank left its rates unchanged this month, but any mention of concerns over China or commodity prices could inspire speculations that the RBA could cut its rates in its next meetings.

The Bank of Japan (BOJ) is also set to release its monetary policy decision at 3:00 am GMT though few analysts are expecting fireworks. For one thing, the central bank could wait until the Fed prints its own decision before making any big decision. This doesn’t mean that we shouldn’t expect a bit of jawboning from the central bank though!

See also:

London Session Recap

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