U.S. Session Forex Recap – September 25, 2015

  • US durable goods orders: -2.0% vs. -2.3% expected, 1.9% previous
  • US core durable goods orders: 0.0% vs. 0.1% expected, 0.4% previous
  • US initial jobless claims: 267K vs. 272K expected, 264K previous
  • US new home sales: 0.55M vs. 0.52M expected and previous
  • Yellen still expects a rate hike in 2015
  • Japan’s inflation numbers on tap

Another mixed trading for forex market players, as risk sentiment, economic data, and commodity prices moved the major currencies around.

The dollar gained pips against low-yielding counterparts like the yen and franc, thanks in part to better-than-expected durable goods numbers. Business spending fell less-than-expected in August after clocking in a 1.9% growth in July.

It also didn’t hurt that Janet Yellen was hawkish in her speech. Not only did the Fed Chief say that she’s expecting a rate hike some time in 2015, but she also said that current global growth concerns don’t have a “significant” impact on the central bank’s rate hike plans and that inflation is expected to reach the Fed’s 2.0% target.

USD/JPY rose by 43 pips (+0.36%) to 120.01 while USD/CHF popped up by 38 pips (+0.39%) to .9759 after hitting a low of .9668.

The Greenback wasn’t as lucky against the comdolls. Interestingly, it was overall risk aversion that boosted gold prices higher and gave the high-yielding Aussie a boost. Even the Loonie got a lift when oil traders focused on the falling U.S. oil supply. Read up on gold-AUD and oil-CAD correlations if you haven’t read the School of Pipsology yet!

AUD/USD ended the session 64 pips higher (+0.92%) to .7027 while USD/CAD capped the day back at 1.3311 after hitting an intraday high of 1.3417. Even Kiwi got a boost, likely after New Zealand’s Fonterra raised its milk payout forecasts.

Last but not the least are the European currencies, which didn’t show much consistency across the board. EUR/USD popped up to an intraday high of 1.1296 before Janet Yellen’s speech pushed it back down to 1.1224 while GBP/USD finally stopped its bleeding for the first time in days. EUR/GBP reflected who between the two is the boss though, with its 29-pip decline (-0.39%) to .7361.

Will we see more volatility among the major currencies today? Japan is firing the first salvo with its release of the National and Tokyo’s CPI numbers. Market players are expecting a 0.1% decline in Japan’s annualized rates (from last month’s 0.2% growth) and a 0.2% slip in Tokyo’s consumer price growth (from last month’s 0.1% uptick). The BOJ is really concerned over Japan’s inflation, so keep an eye out for any significant hits or misses!

See also:

London Session Recap

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

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