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

  • US CPI: -0.1% as expected vs. 0.1% growth previous
  • US core CPI: 0.1% as expected and previous
  • US NAHB house builders’ survey: 62 vs. 61 expected and previous
  • US net long TICS flows: 7.7B USD vs. 27.5B USD expected, 103.1B USD previous
  • CA foreign securities purchases: -10.12B CAD vs. 5.50B CAD expected, 8.79B CAD previous
  • NZ quarterly GDP: 0.4% vs. 0.5% expected, 0.2% previous
  • Gold, oil, U.S. equities up on the day
  • Japan trade balance, RBA quarterly bulletin on tap

Think forex traders will shy away from big moves ahead of the FOMC statement? Think again! Check out the biggest movers during the U.S. trading session.

While dollar bulls and bears were busy gearing up for the big FOMC announcement later, other traders had their eyes on individual currency stories. In fact, the Greenback’s price action might have more to do with other news than U.S.-related ones.

For starters, the pound continued its intraday uptrend against most of its major counterparts after the release of better-than-expected employment numbers from the U.K. Not only that, but word on the hood is that BOE members such as Kristin Forbes, Martin Weale, and even Governor Mark Carney himself have hinted that interest rates could rise soon.

GBP/USD popped up by another 57 pips (+0.37%) to 1.5494 after hitting a 1.5528 intraday high while GBP/JPY rocketed by 67 pips (+0.36%) to 186.83 after reaching a high of 187.20.

The euro was also all over the charts. The common currency started the session on a strong note following an early London session selloff when the disappointing CPI readings were released. Luckily for the euro, weak U.S. CPI readings pushed EUR/USD, one of the most closely-watched dollar pairs, higher and dragged some euro pairs with it.

EUR/USD ended the session 61 pips lower (-0.54%) to 1.1287 while EUR/JPY popped up by 75 pips (+0.55%) to 136.10. The euro also went head-to-head with the pound with EUR/GBP trading in a tight range just below the .7300 handle. Meanwhile, USD/CHF, usually inversely correlated with EUR/USD, dropped by 39 pips (-0.40%) throughout the session.

Even the comdolls were fearless against the Greenback yesterday. Of course, it might have helped that gold prices posted its largest one-day gain in almost a month on speculations that the Fed WON’T raise its rates today while oil prices surged by as much as 5.7% on the back of a drop in U.S. oil stockpiles.

AUD/USD rose by 42 pips (+0.59%) to .7197 while USD/CAD slipped by a nice 63 pips (-0.48%) to 1.3171. Meanwhile, NZD/USD lollygagged around the .6350 area.

Let’s see if Asian session forex traders extend yesterday’s U.S. session moves. They don’t have a lot on their plate to consider save for New Zealand’s slightly worse-than-expected quarterly GDP reading and Japan’s trade balance on tap. With the FOMC decision only a couple of hours away, we might not see monster moves in reaction to these releases. That doesn’t mean you shouldn’t stick close to your newswires though! For all we know forex traders could use today’s headlines to square or start their positions ahead of the Fed event.

Good luck and good trading!

See also:

London Session Recap

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