U.S. Session Forex Recap – Apr. 18, 2016

  • Canadian manufacturing sales down 3.3% vs. -1.4% estimate
  • U.S. industrial production fell 0.6% vs. projected 0.1% dip
  • U.S. preliminary UoM consumer sentiment index down from 91.0 to 89.7
  • Empire State manufacturing index up from 0.6 to 9.6 vs. 2.1 forecast
  • Doha meeting fails to produce oil output freeze deal
  • New Zealand quarterly CPI up 0.2% vs. 0.1% in Q2

The Greenback gave up some ground against its rivals when profit-taking took place on Friday, and signs are pointing to a mixed start this week.

Major Events:

Mostly downbeat U.S. data – Uncle Sam ain’t done printing weaker than expected economic reports, as most of the data came in the red on Friday. Industrial production slumped 0.6% instead of showing the estimated 0.1% dip while capacity utilization fell to 74.8%.

Consumers aren’t feeling too positive either, as the preliminary consumer sentiment index from the University of Michigan declined from 91.0 to 89.7 instead of improving to the estimated 91.9 figure. On a more upbeat note, the Empire State manufacturing index jumped from 0.6 to 9.6 versus the forecast at 2.1 to show a stronger pace of industry growth.

Doha meeting: No deal! – So much for counting on an oil output freeze! Talks broke down in Doha with OPEC and non-OPEC leaders unable to agree on a plan to cap production and boost prices.

As it turns out, Iran refused to budge, insisting on its pledge to ramp up production to regain its lost market share after Western sanctions have been lifted. Some nations such as Russia seemed amenable to the idea that not all oil producers should be obliged to cap production but Saudi Arabia insisted that Iran should be part of the deal.

The meeting concluded with Qatar’s oil minister saying that they need more time to consult further. The next OPEC meeting is scheduled on June 2.

Major Currency Movers:

USD Dollar pairs don’t seem to be feeling the Monday blues as huge weekend gaps were seen all over the charts.

USD/JPY gapped down to start the week at 108.21 from its Friday close of 108.72, EUR/USD kicked off at 1.1309 from its previous week close of 1.1283, GBP/USD retreated from a high of 1.4242 to the 1.4180 area, and USD/CHF opened at .9658 after closing at .9681.

CAD The Loonie seemed to have an inkling that the weekend Doha meeting would be a dud since the currency was already falling since Friday.

USD/CAD hit a high of 1.2901 on Friday then surged to open at 1.2955 this week, CAD/JPY dipped to a low of 84.63 then gapped down to 83.55 today, EUR/CAD kicked off at 1.4640, and GBP/CAD opened above the 1.8400 handle.

Watch Out For:

  • 2:30 am GMT: Australian new motor vehicle sales (-0.1% previous)

See also:

Asian Session Recap

London Session Recap

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