Pip Diddy

GBP jumped higher and was the best-performing currency of the session. However, NZD and USD were able to put up a good fight. JPY, meanwhile got burned during the session.

Forex market players hit the snooze button in today’s Asian session trading as a lack of catalysts pushed them in the sidelines ahead of an eventful U.S. session.

Not so fast! Despite the buildup for another round of hawkish remarks from Yellen, the Fed head honcho hit the pause button on the dollar’s rally in admitting that the central bank may have been too optimistic. 

USD was the one currency to rule them all. EUR & GBP, meanwhile, got another good bashing and were the worst-performing currencies of the morning London session.

Asian session traders priced in North Korea’s latest “act of war” threat even as Aussie and Kiwi traders trade currency-specific catalysts.

Risk-off vibes kicked into high gear as the New York session rolled along and traders got wind of headlines on a fresh batch of threats from North Korea.

Not much on the docket but there was price action aplenty since EUR extended its losses while falling bond yields apparently allowed JPY to just shrug Abe’s call for a snap election.

Uncertainties from weekend elections in Germany and New Zealand weighed on Kiwi and the euro. Meanwhile, markets expect Japan PM Shinzo Abe to call for a snap election.

All eyes were on USD because of the FOMC statement. However, Kiwi domination was actually the major theme this week. So, what drove forex price action?

The risk-on vibes during the session apparently gave the higher-yielding currencies a lift, especially AUD. However, the same risk-on vibes took a heavy toll on JPY.