U.S. Session Forex Recap – September 30, 2015

  • CA industrial product price index: -0.3% vs. -0.5% expected, 0.7% previous
  • CA raw materials price index: -6.6% vs. -7.5% expected, -6.0% previous
  • US S&P Case-Schiller home price index: 5.0% vs. 5.1% expected, 4.9% previous
  • US consumer confidence: 103.0 vs. 96.2 expected, 101.3 previous
  • NZ building permits: -4.9% vs. 20.4% previous
  • Japan PM Shinzo Abe plans to implement “Abenomics 2.0”
  • Japan retail sales, industrial production numbers due today

Ho-hum. Thanks to a lack of market-moving data, the major currencies traded in tight ranges throughout the forex session.

It’s not that there weren’t ANY reports printed. Yesterday Uncle Sam’s consumer confidence clocked in a strong 103.0 reading when market players were only expecting a 96.2 figure. Meanwhile, traders mostly shrugged off a slightly weaker-than-expected S&P home price index report. This isn’t surprising since the monster NFP report is only a few days away and traders might be waiting in the sidelines before they take on new positions.

The lack of commitment to stick to a direction was prevalent among major currency pairs. The dollar lost a couple against the yen and the franc but gained a couple against the European currencies.

USD/JPY slipped by 14 pips (-0.12%) to 119.74 while USD/CHF inched 5 pips lower (-0.05%) to .9720. Meanwhile, EUR/USD popped up by 25 pips (+0.22%) to 1.1251 and GBP/USD lingered around its intraday lows before finishing the session 6 pips higher (+0.04%) to 1.5152.

Comdoll traders got a bit more action, but not as exciting as it was yesterday when U.S. equities were dropping like hot potatoes. Overall risk aversion was enough to spur on the comdoll bears.

AUD/USD was left with a 4-pip gain to .6992 after hitting an intraday high at .7024 while USD/CAD reached its 11-year highs at 1.3457 before settling down to 1.3417. Last but not the least is the Kiwi, which mirrored AUD/USD’s price action and hit an intraday high at .6394 before closing back down to .6352.

Let’s see if Asian session forex traders are hungrier for volatility than their U.S. counterparts. A couple of hours ago Japanese Minister Shinzo Abe used his U.N. General Assembly speech to express his commitment to his policies prioritizing aggressive monetary policy. In fact, he even hinted at a new stage he called “Abenomics 2.0.” Duhn duhn duhn duhn.

So far the yen crosses haven’t reacted much to his speech as they haven’t broken from their tight U.S. session ranges. Are forex traders just waiting for momentum or small breakouts before they push the yen higher or lower across the board? Stick around and keep close tabs on your trade setups in case we’re in for a volatile day today!

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.

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