U.S. Session Forex Recap – Nov. 6, 2015

  • U.S. initial jobless claims at 276K vs. 263K expected
  • U.S. preliminary non-farm productivity up 1.6% vs. 0.1% forecast
  • U.S. preliminary unit labor costs up 1.4% vs. 2.2% forecast
  • Canadian Ivey PMI down from 53.7 to 53.1 vs. 54.0 consensus
  • FOMC member Lockhart: Labor slack substantially gone

U.K. Super Thursday events continued to wreak havoc during the first part of the New York trading session while a bit of forex profit-taking took place just after halftime.

Major events:

U.S. labor indicators – Medium-tier employment reports all missed expectations but didn’t seem to be enough to dull the Greenback’s shine. Initial jobless claims clocked in at 276K, higher than the 263K consensus and the 260K previous reading. Preliminary non-farm productivity jumped by 1.6% in Q3 while preliminary unit labor costs showed a 1.4% gain versus the 2.2% forecast, both signaling downside pressure on wage growth.

FOMC member speeches – Forex traders are paying extra close attention to remarks from Fed officials, trying to read between the lines and weigh the odds of a rate hike in the December meeting. FOMC member Lockhart said that this decision might still be a close call, although he acknowledged that labor slack is substantially gone.

Major Currency Movers:

GBP – BOE events (monetary policy statement, meeting minutes, Inflation Report) turned out surprisingly downbeat, leaving pound forex traders with a nasty hangover for the most part of the U.S. session. GBP/USD carried on with its “Carney carnage” from the 1.5400 area to a low of 1.5204, GBP/JPY fell to a low of 184.95, EUR/GBP popped up from its long-term support around .7050 to a high of .7154.

USD – The U.S. dollar made a quick pullback from its recent rally against most of its forex peers (except for the pound) when the labor indicators were printed, as these reflected potential downside pressure on hiring trends down the line. USD/JPY peaked at 122.00 then retreated to a low of 121.51, EUR/USD is putting up a strong fight to keep its head above 1.0850, and USD/CHF edged slightly higher to .9953.

Watch out for:

  • BOJ monetary policy meeting minutes at 11:50 pm GMT
  • FOMC Fischer’s testimony at 12:30 am GMT

See more:

Asian Session Recap

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.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!