U.S. Session Forex Recap – Sept. 15, 2016

  • U.S. import prices down 0.2% vs. projected 0.1% decline in August
  • U.S. crude oil inventories down 0.6M barrels vs. projected 2.8M gain
  • New Zealand Business NZ manufacturing index down from 55.5 to 55.1
  • New Zealand economy grew by 0.9% vs. 1.1% forecast in Q2
  • New Zealand Q1 GDP upgraded from 0.7% to 0.9%

You win some, you lose some! The Greenback had another off day as it returned some of its recent gains in the absence of top-tier U.S. data.

Major Events:

Drop in oil inventories – The U.S. Energy Information Administration reported a draw of 0.6 million barrels of crude oil versus the projected gain of 2.8 million barrels. WTI crude oil popped up 0.5% to $45.10 per barrel upon seeing the surprise drop in supply but just a quickly resumed its drop. Analysts speculated that the reduction may have been a one-off thing, as companies are in storage season and the rise in oil rigs could translate to a surge in output in the next weeks.

Profit-taking ahead of top-tier events? – Traders likely lightened up on their bullish dollar positions before the release of the U.S. retail sales  and PPI figures later today, as the results are likely to have a strong say in Fed rate hike odds. Also lined up today are monetary policy decisions from the SNB and the BOE.

The latest data on U.S. import prices showed a slightly sharper than expected 0.2% drop versus the projected 0.1% dip for August, possibly putting downside pressure on producer prices for the same month. Components of the report indicated that the main drag was from weaker fuel prices, which were in the red for back-to-back months.

New Zealand GDP – Before New York session traders were able to call it a night, New Zealand printed its Q2 GDP report, which turned out weaker than expected. The economy grew by only 0.9% in the quarter, slower than the estimated 1.1% expansion. Still, underlying data showed a healthy gain in exports, household consumption, and construction for the period while the previous quarter’s reading was upgraded from 0.7% to 0.9%.

Major Market Movers:

USD – The U.S. dollar slid across the board on profit-taking, even as risk appetite remained weak in the financial markets. U.S. equity indices posted losses while commodities were also in the red.

EUR/USD rose from 1.1222 to a high of 1.1275, GBP/USD popped a hundred pips up from a low of 1.3138 to 1.3238, USD/JPY slid from 102.77 to a low of 102.25, USD/CHF is down from .9755 to a low of .9705, and NZD/USD climbed from .7276 to .7305.

Watch Out For:

See also:

London Session Recap

Asian Session Recap

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