U.S. Session Forex Recap – Oct. 28, 2016

  • U.S. headline durable goods orders down 0.1% vs. projected 0.1% uptick
  • U.S. core durable goods orders up 0.2% as expected
  • U.S. initial jobless claims at 258K vs. 261K forecast
  • U.S. pending home sales up 1.5% vs. 1.2% consensus in Sept

Medium-tier reports from the U.S. came in mostly better than expected once more, allowing the Greenback to extend its gains across the board.

Major Events:

Mostly upbeat U.S. data – Following yesterday’s upbeat data dump, Uncle Sam had another round of reports that came in mostly better than expected. Only the headline durable goods orders report disappointed with a 0.1% dip versus the estimated 0.1% uptick but the core version of the report printed a 0.2% gain as expected.

Initial jobless claims were lower at 258K compared to the earlier 261K reading, indicating positive momentum in the labor market. Meanwhile, pending home sales ticked 1.5% higher in September, outpacing expectations of a 1.2% increase.

Crude oil chatter – In the commodities arena, crude oil was the star of the show once more after Saudi Arabia reportedly proposed a 4% output cut to Russia. This comes a day after a Russian envoy was quoted saying that production cuts are “not an option for us.”

Word through the pipeline is that representatives from Saudi Arabia flew all the way to Moscow to meet with their counterparts in order to come up with a deal that is inclusive of non-OPEC oil producers. Keep in mind that Russia is one of the world’s top oil producers so its cooperation in any output deal is key, even if other OPEC members like Iraq refuse to participate.

Major Market Movers:

USD – The Greenback seemed unstoppable in its climb as it got a fresh boost from upbeat medium-tier data.

USD/JPY advanced from 104.73 to a high of 105.35, EUR/USD fell from 1.0924 to a low of 1.0882, GBP/USD is down from 1.2260 to 1.2150, AUD/USD retreated from .7630 to test support at .7600, and USD/CAD is still consolidating around 1.3385.

Watch Out For:

  • 11:30 am GMT: Japanese household spending (-2.6% expected, -4.6% previous)
  • 11:30 am GMT: Tokyo core CPI (-0.5% expected, -0.5% previous)
  • 11:30 am GMT: National core CPI (-0.5% expected, -0.5% previous)
  • 11:30 am GMT: Japanese unemployment rate (no change from 3.1% expected)
  • 12:30 am GMT: Australia PPI q/q (0.6% expected, -0.1% previous)

See also:

London Session Recap

Asian Session Recap

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