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

  • Canadian raw material price index up 0.4% as expected
  • Canadian industrial product price index down 0.5%
  • Gold prices slipped to record lows below $1,100/ounce
  • WTI crude oil below $42/barrel
  • New Zealand building consents up 5.1% in Oct

Just as shopaholics were busy grabbing Black Friday doorbuster deals, forex traders also took advantage of bargain prices for dollar pairs. The U.S. currency capped off the week with a strong rally even with the lack of top-tier catalysts.

Major Events:

Commodity price tumble – Lower liquidity gave commodity market players more energy to push prices around, with sellers taking the upper hand for oil and gold. The precious metal broke below the $1,100/ounce major psychological floor and dipped to the $1,052/ounce levels – lows not seen since January 2010.

Crude oil prices weren’t immune to declines, as WTI crude oil broke fell $42/barrel while Brent crude oil is fighting to keep its head above $45/barrel.

Underlying Canadian inflation data – With no other major reports on deck during the U.S. trading session, forex junkies turned their attention to the medium-tier inflation readings from Canada. The raw material price index showed a 0.4% gain as expected, way slower than the previous 2.4% gain, while the industrial product price index printed a 0.5% drop, worse than the projected 0.1% dip.

Major Currency Movers:

USD – Even though most U.S. traders were still in a food coma after eating all that turkey during Thanksgiving, the Greenback still managed to make a few good moves here and there.

USD/JPY bounced back up to a high of 122.83 from an intraday low of 122.30, EUR/USD tested the resistance at 1.0600 then fell to 1.0583, GBP/USD gradually slid below the 1.5050 minor psychological support, and USD/CHF popped up to a high of 1.0326.

CAD – After raking in a few gains the previous day, the Loonie had to return ’em all when oil prices retreated.

USD/CAD found support at the 1.3300 area and climbed back to 1.3350, CAD/JPY consolidated for a bit then dipped to a low of 91.70, EUR/CAD bounced off 1.4100 to a high of 1.4177, and GBP/CAD made another attempt to break past the resistance at 2.0125.

Watch Out For:

  • Japanese retail sales report at 11:50 pm GMT (0.9% expected, -0.1% previous)
  • Japan’s preliminary industrial production data at 11:50 pm GMT (1.9% expected, 1.1% previous)
  • New Zealand ANZ business confidence index at 12:00 am GMT (10.5 previous)
  • Australian quarterly company operating profits at 12:30 pm GMT (1.1% expected, -1.9% previous)
  • BOJ Governor Kuroda’s speech (anytime during Asian session)

See more:

Asian Session Recap

London Session Recap

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