U.S. Session Forex Recap – Dec. 4, 2015

  • U.S. ISM non-manu PMI down from 59.1 to 55.9 vs. 58.1 forecast
  • U.S. factory orders up 1.5% in Oct vs. 1.2% forecast, -0.8% previous
  • U.S. initial jobless claims up 269K as expected, 260K previous
  • Yellen: Fed is close to raising interest rates

The euro doesn’t seem to be running out of gas anytime soon! Forex traders are still buzzing about the ECB statement, brushing Fed head Yellen’s hawkish remarks aside.

Major Events:

ECB statement aftermath – Just when it seemed like the knee-jerk reaction to the ECB announcement was about to fade soon, euro bulls took the shared currency much higher throughout the U.S. session. Wondering what I’m talking about? I’ve got it all covered in my London session forex recap.

Mixed U.S. data – The U.S. ISM non-manufacturing PMI fell from 59.1 to 55.9, lower than the projected 58.1 figure for November. The employment component also indicated a decline from 59.2 to 55.0 so there’s a chance that the upcoming NFP might disappoint. Initial jobless claims came in line with expectations of a 269K increase while factory orders printed a stronger than expected 1.5% gain.

Yellen’s hawkish testimony – Just like her testimony yesterday, Fed head Yellen sounded chipper again, pointing out that the central bank is moving close to hiking interest rates. “Ongoing gains in the labor market, coupled with my judgment that longer-term inflation expectations remain reasonably well anchored, serve to bolster my confidence in a return of inflation to 2%,” she explained.

Major Currency Movers:

EUR – Looks like euro bears felt really disappointed! The shared currency extended its climb in the past few hours, chalking up an additional hundred or so pips in gains against most of its forex peers.

EUR/USD is up 354 pips to 1.0966 (+3.35%), EUR/JPY is up 346 pips to 134.26 (+2.65%), EUR/GBP is up 142 pis to .7239 (+2.00%), and EUR/CHF is up 61 pips to 1.0869 (+0.57%).

USD – The Greenback was still mostly weaker against its forex counterparts, with traders likely lightening up on their positions ahead of the NFP release.

USD/JPY is down 81 pips to 122.42 (-0.67%), USD/CHF is down 271 pips to .9911 (-2.66%), USD/CAD is down 10 pips to 1.3335 (-0.05%), AUD/USD is up 48 pips to .7355 (+0.66%0, and NZD/USD is up 54 pips to .6688 (+0.81%).

Watch Out For:

  • 1:30 am GMT: Australian retail sales (0.4% expected, 0.4% previous)
  • 2:30 am GMT: Japanese average cash earnings (0.4% expected, 0.4% previous)
  • 6:00 am GMT: Japanese consumer confidence index (41.8 expected, 41.8 previous)

See more:

Asian Session Recap

London Session Recap

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