U.S. Session Forex Recap – Oct. 12, 2016

  • U.S. labor market conditions index down from -1.3 to -2.2 in Sept
  • U.S. NFIB Small Business Index down from 94.4 to 94.1 vs. 95.2 forecast
  • Canadian housing starts up from 182K to 221K vs. 194K forecast

No data? No problem! Major pairs still had a pretty eventful day even though there were no major reports on deck.

Major Events:

Weaker low-tier U.S. data – The latest numbers from Uncle Sam didn’t look too good, but fortunately these weren’t major reports. The labor market conditions index fell from -1.3 to -2.2 in September, reflecting deteriorating conditions based on the composite reading of 19 employment-related figures compiled by the Fed.

Meanwhile, the NFIB Small Business Index slipped from 94.4 to 94.1 instead of improving to the projected 95.2 figure. As it turns out, most small business owners expect conditions to improve in the coming months, but this optimism was outweighed by weaker inventories and hard-to-fill job openings.

Major Market Movers:

GBP – The pound carried on with its slide from earlier in the day before rebounding towards the end of the session.

GBP/USD fell from 1.2308 to a low of 1.2088 then pulled up to 1.2264 (-0.36%), GBP/JPY dropped from 127.37 to a low of 124.85 then rallied to 125.50 (-1.46%), EUR/GBP jumped from .9009 to .9139 then retreated back to .9008 (-0.01%), and GBP/NZD dipped from 1.7350 to 1.7142 then bounced to 1.7174 (-1.01%).

JPY – The Japanese yen flexed its safe-haven muscles once more as traders seemed to be easing up on their dollar positions ahead of the FOMC minutes.

USD/JPY retreated from 103.72 to a low of 103.18 (-0.52%), EUR/JPY is down from 114.93 to 114.00 (-0.81%), AUD/JPY slipped from 78.35 to 77.75 (-0.76%), CAD/JPY dropped from 78.52 to 77.75 (-0.98%), and NZD/JPY is down from 73.27 to a low of 72.77 (-0.68%).

Watch Out For:

  • 11:30 pm GMT: Australia Westpac consumer sentiment
  • 11:50 pm GMT: Japanese core machinery orders (-4.4% expected, +4.9% previous)
  • 6:00 am GMT: Japanese preliminary machine tool orders (-8.4% previous)

See also:

London Session Recap

Asian Session Recap

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