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

  • US advance GDP: 1.2% vs. 1.4% expected, 2.1% previous
  • US advance GDP (annualized): 1.5% vs. 1.6% expected, 3.9% previous
  • US initial jobless claims: 260K vs. 265K expected, 259K previous
  • US pending home sales: -2.3% vs. 1.0% expected, -1.4% previous
  • CA raw materials price index: 3.0% vs. 1.1% expected, -6.6% previous
  • CA industrial product price index: -0.3% vs. -0.1% expected, -0.3% previous
  • UK CBI realized sales: 19 vs. 35 expected, 49 previous
  • NZ building permits: -5.7% vs. -5.3% previous
  • Japan scheduled to release data dump as Australia prints PPI and private sector credit numbers
  • BOJ expected to keep policies steady

All’s fair in love and forex trading! The Greenback gave up pips to most of its major counterparts after traders priced in mixed data from Uncle Sam.

The first GDP release for Q3 2015 clocked in at 1.2% when market players had been expecting a 1.4% growth. The annualized figure also disappointed with a 1.5% uptick after the previous quarter’s 3.9% growth.

A closer look at the details reveals that businesses scaled back on restocking as they work off their excess inventory. The glut is expected to be temporary. Meanwhile, consumer spending, which makes up two-thirds of the GDP, remained strong thanks to lower oil prices and strengths in the housing and labor markets.

The dollar didn’t fly up the charts as yesterday though, probably because pending home sales declined by 2.3% when analysts had been estimating a 1.0% uptick for the report while initial jobless claims inched 1k higher to 260K.

The dollar didn’t fly up the charts as yesterday though, probably because pending home sales declined by 2.3% when analysts had been estimating a 1.0% uptick for the report while initial jobless claims inched 1k higher to 260K.

EUR/USD capped the session with a 16-pip gain (+0.17%) to 1.0977 while GBP/USD also popped up by 51 pips (+0.33%) to 1.5312. The moves weren’t as clear against fellow low-yielding currencies with USD/CHF only losing 2 pips (-0.02%) to .9896 while USD/JPY actually rose by 18 pips (+0.15%) to 121.12.

The Greenback also showed mixed results against the comdolls thanks to individual currency stories. Gold prices hovered near its three-week lows after the Fed hinted at a possible December rate hike. This is probably why AUD/USD lost 23 pips (-0.32%) to .7070 and NZD/USD lost 12 pips (-0.18%) to .6689.

The Loonie also had bulls and bears chomping on throughout the forex trading session as Canada printed a better-than-expected raw materials price index report and a slightly worse-than-expected industrial product price index data. Luckily for Loonie bulls, oil prices sided with them with U.S. crude oil futures inching $0.12 higher even if Brent crude closed $0.27 lower on the day.

USD/CAD dropped by 48 pips (-0.36%) to 1.3169 while CAD/JPY jumped by 47 pips (+0.51%) to 91.97.

Will the Asian session forex traders keep the dollar subdued for the next couple of hours? Japan is set to release its inflation, unemployment, and household spending at 11:30 pm GMT. The main event won’t happen until around mid-Asian session trading though, as the Bank of Japan (BOJ) releases its monetary policy statement. Market players aren’t expecting any changes from the central bank though we might see hints of further easing now that Japan’s economy seems to have taken a turn for the worse.

Stick around during the release in case we see any dovish surprises from the BOJ, aight? After all, any signs of further easing could affect risk sentiment, at least for the next few hours.

Good luck and good trading!

See also:

London Session Recap

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