U.S. Session Forex Recap – Feb. 26, 2016

  • U.S. headline durable goods orders up by 4.9% vs. 3.0% forecast
  • U.S. core durable goods orders up by 1.8% vs. 0.2% forecast
  • U.S. initial jobless claims at 272K as expected, 262K previous
  • Russian oil minister: OPEC and non-OPEC leaders to meet in March
  • New Zealand trade balance showed 8 million NZD surplus vs. estimated 250 million NZD deficit

Is risk appetite back on? Higher-yielding currencies led by the Loonie advanced against their forex counterparts but the British pound still lagged far behind.

Major Events:

Strong U.S. economic data – In contrast to what we’ve been seeing in the past few days, the U.S. economy churned out a bunch of upbeat reports in the latest New York session.

Headline durable goods orders recovered by 4.9% in December versus the projected 3.0% rebound while the core version of the report printed a 1.8% gain, outpacing the estimated 0.2% uptick. Initial jobless claims came in line with expectations at 272K, higher than the previous week’s 262K figure.

March huddle between top oil producers – Despite the reluctance of Iran and Saudi Arabia to trim oil output, other oil-producing nations ain’t throwing in the towel just yet. According to Russia’s oil minister, leaders of OPEC and non-OPEC nations are set to have a meeting next month, possibly to discuss proposals to freeze oil production. Again.

Major Currency Movers:

CAD – The Loonie was once again one of the strongest currencies for the day, as forex traders had their hopes up for any kind of coordinated action to boost oil prices.

USD/CAD broke below support at the 1.3700 handle and fell to a low of 1.3538, CAD/JPY made a strong rally past the resistance at 82.00 to a high of 83.32, EUR/CAD broke below support around 1.5150 to test the 1.5000 handle, and GBP/CAD carried on with its drop to a low of 1.8920.

GBP – The British pound seemed unstoppable in its dive, hitting new lows against most of its forex peers.

GBP/AUD barely made any retracements and broke below its previous low of 1.9293, GBP/NZD slid below the 2.0900 handle to a low of 2.0671, and EUR/GBP consolidated at .7900. GBP/USD managed to pull up to the 1.3980 area while GBP/JPY retraced to the 158.00 mark.

Watch Out For:

  • 11:30 am GMT: Tokyo core CPI (0.0% expected, -0.1% previous)
  • 11:30 am GMT: Japanese national core CPI (-0.2% expected, -0.3% previous)

See also:

Asian Session Recap

London Session Recap

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