U.S. Session Forex Recap – Nov. 17, 2016

  • U.S. headline PPI flat in Oct vs. 0.3% forecast
  • U.S. core PPI down by 0.2% vs. projected 0.2% uptick
  • U.S. industrial production flat vs. expected 0.2% gain
  • U.S. crude oil inventories up by 5.3M barrels vs. 0.4M forecast
  • Canadian manufacturing sales up 0.3% vs. projected 0.2% drop

You win some, you lose some! Economic data from the U.S. failed to impress, but that didn’t stop the dollar from chalking up some gains against its peers.

Major Events:

Downbeat U.S. data – The forex calendar didn’t print its usual set of green figures from Uncle Sam, as the reports churned out mostly weaker than expected results this time. Headline PPI in October was flat instead of showing the projected 0.3% increase while the core version of the report indicated a 0.2% decline versus the estimated 0.2% uptick. Components of the report indicated that the drop was spurred by lower prices for securities brokerage, dealing, investment advice, and related services.

Meanwhile, industrial production was also flat in October, failing to show the projected 0.2% growth. To top it off, the previous reading was downgraded to show a 0.2% decline. Capacity utilization fell from 75.4% to 75.3% to reflect lower productivity.

Crude oil bounce – The U.S. Energy Information Administration reported that crude oil inventories rose by 5.3 million barrels, much larger than the estimated increase of 0.4 million barrels, reviving oversupply concerns.However, Black Crack got a boost later on when Russian energy minister Novak remarked that there’s a strong chance for the OPEC to reach an output deal later this month.

Although Russia ain’t exactly a member of the cartel, Novak expressed confidence that the oil market could rebalance itself in a shorter period of time and added that they will support whatever the OPEC’s decision will be. And confirming that the OPEC Secretary General is indeed making the rounds with top oil producers, Novak mentioned that they are scheduled to meet soon and that they’re likely to agree on an output freeze.

Major Market Movers:

EUR – The euro was stuck in the losers’ bench as it gave up ground across the board.

EUR/USD fell from the 1.0700 area to a low of 1.0665 before bouncing back to 1.0682, EUR/JPY dropped from 117.20 to a low of 116.31, EUR/GBP struggled to hold on to its week open price above .8600, and EUR/NZD fell back to support at 1.5100.

CAD – In contrast, the Loonie was a consistent gainer, thanks to another positive day for crude oil.

USD/CAD dropped from an intraday high of 1.3494 to 1.3403, CAD/JPY rallied to a high of 81.58, EUR/CAD fell from 1.4437 to a low of 1.4319, and GBP/CAD tumbled below the 1.6700 handle.

Watch Out For:

See also:

London Session Recap

Asian Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!