U.S. Session Forex Recap – September 21, 2015

  • CA headline CPI stays flat as expected vs. 0.1% previous
  • CA CPI (y/y): 1.3% as expected
  • CA core CPI: 0.2% as expected vs. 0.0% previous
  • US CB leading index: 0.1% vs. 0.2% expected, 0.0% previous
  • Tsipras’ party Syriza set to win Greece’s general elections over the weekend
  • Japan’s markets out on Respect-for-the-Aged holiday
  • NZ credit card spending report scheduled at 3:00 am GMT

And the dollar strikes back! There wasn’t any major report on deck, but the Greenback turned out to be a clear winner against most of its major forex counterparts.

The only major report on the docket was Canada’s inflation readings. Consumer prices held steady in the month of August as lower oil prices kept prices from heating up. The core reading wasn’t anything to write home about either, so analysts are assuming that last Friday’s reports won’t affect the Bank of Canada’s (BOC) policy much.

The bigger headliner was the dollar, which surprisingly registered big wins against its forex counterparts. There’s no definite explanation for the big moves though some market players are pointing to options expiration, end-of-week trading, concern for global growth, post-FOMC moves, and even technical chart levels for explanations.

EUR/USD erased almost all of its weekly gains with a whopping 140-pip drop (-1.23%) to 1.1283 while GBP/USD also fell by 106 pips (-0.68%) to 1.5525. The low-yielding currencies also bowed down to the dollar with USD/JPY jumping by 71 pips (+0.60%) to 119.97 and USD/CHF rocketing by 145 pips (+1.52%) to .9695.

Even the comdolls had a rainy day against the Greenback. Gold ended the day higher on the back of global growth concerns and overall risk aversion while uncertainty over the Fed’s interest rate schedule weighed on oil prices.

The dollar still managed to dominate the comdolls with AUD/USD falling by 84 pips (-1.15%) to .7192; USD/CAD popping up by a ridiculous 194 pips (+1.49%) to 1.3216 and NZD/USD sliding by 41 pips (-0.64%) to .6404.

Will the risk aversion theme extend to today’s Asian session trading? Japan’s markets are out on Respect-for-the-Aged Day holiday and we don’t have much to look forward to save for New Zealand’s credit card spending report at 3:00 am GMT.

This doesn’t mean that you shouldn’t watch your charts though. Use your time to look for trade setups and any headlines that might affect forex price action!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!