U.S. Session Forex Recap – Nov. 3, 2015

  • U.S. ISM manu PMI dipped from 50.2 to 50.1 in Oct vs. 50.0 forecast
  • U.S. ISM manufacturing survey employment index down from 50.5 to 47.6
  • ECB member Villeroy: French economy isn’t growing fast enough
  • Japanese banks on holiday today
  • RBA to keep interest rates on hold at 2.00%?

Consolidation was the name of the game for most dollar pairs, as most forex traders are still figuring out how to cast their bets ahead of this week’s NFP release. Data from the U.S. was somewhat in line with consensus, with the ISM manufacturing PMI dipping from 50.2 to 50.1 in October.

What caught they eye of most market participants was the drop in the employment component, which indicated a contraction at 47.6 (50.5 previous) in the previous month. On the flip side, the sub-indices for new orders and production showed a stronger pace of expansion.

EUR/USD is struggling to hold steady above the 1.1000 major psychological support, USD/JPY filled its weekend gap and is trading back above 120.50, GBP/USD retreated upon coming within striking distance of 1.5500 and is down to 1.5420, and USD/CHF is stuck between .9845 and .9890.

The euro resumed its slide against most of its forex peers when ECB member Villeroy de Galhau mentioned in his testimony that the French economy isn’t growing fast enough. He also expressed his preference for further easing in the ECB’s next policy meeting in December, although he pointed out that this decision still depends on upcoming data.

EUR/GBP edged deeper below the .7200 handle and dipped to a low of .7124, EUR/JPY managed to hold on to the 133.00 mark, EUR/NZD is at the bottom of its short-term range at 1.6245, and EUR/AUD is back below the 1.5400 level.

Japanese banks are closed for the holiday today, which suggests that yen forex pairs might get their own dose of consolidation. On the other hand, comdolls could be in for a wild ride since the RBA is set to announce its interest rate decision in the next few hours. Better be on the lookout for a potential rate cut or very dovish remarks since these might push the Aussie down under!

See also:

London Session Recap

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