U.S. Session Forex Recap – September 22, 2015

  • CA wholesale sales: 0.0% vs. 0.8% expected, 1.3% previous
  • CA wholesale sales: 0.0% vs. 0.8% expected, 1.3% previous
  • Fed’s Bullard ready to raise interest rates
  • Fed’s Lockhart: September decision a close call, favors 2015 rate hike
  • BOC’s Poloz: weak CAD is cushioning the impact of lower oil prices
  • Japanese markets out on another bank holiday
  • AU quarterly house price index on tap
  • China’s CB leading index due today

U.S. session trading was a mixed bag of nuts, as forex traders priced in currency-specific headlines. So what happened exactly?

The euro was under a big spotlight as it dropped against most of its major counterparts. While weak data and dovish central bank comments might have weighed on the common currency, market players are pointing to the dollar’s overall strength as the reason for the euro’s decline. After all, Fed members Bullard and Lockhart both gave hawkish speeches yesterday. Lockhart, a known dove, even hinted that a 2015 rate hike is still on the table!

EUR/USD made new intraday lows and slid by another 58 pips (-0.52%) to 1.1195 while EUR/JPY also slipped by 63 pips (-0.47%) to 134.91. Even EUR/GBP declined by 24 pips (-0.33%) to .7225 and EUR/CHF fell by pips (-0.39%) to 1.0858.

The comdolls also bowed down to the dollar despite mixed commodity price performances. Gold slid on a strong dollar while oil prices popped up by as much as 4.48% on the back of lower production capacity in the U.S.

Profit-taking might have also factored in. If you recall, the Aussie had a blast in the charts in the days leading up to the Fed’s decision. Meanwhile, the Kiwi was still reeling from weak Westpac consumer sentiment and visitor arrivals numbers.

AUD/USD fell by 36 pips (-0.50%) to .7131 while USD/CAD rocketed by 72 pips (+0.55%) to 1.3256 and NZD/USD dropped by another 41 pips (-0.65%) to .6317.

Asian session forex traders aren’t likely to see monster volatility today, especially with Japan’s markets out on another bank holiday. What you could watch out for is Australia’s quarterly house price index out at 1:30 am GMT. Analysts are expecting a 2.3% growth after the previous quarter’s 1.6% uptick. Of course, significant hits or misses could always cause a bit of volatility, so keep your eyes peeled!

See also:

London Session Recap

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