Pip Diddy

Not even stronger than expected data from Canada was enough to keep the Loonie supported when crude oil prices declined. Here’s how it all turned out.

No data? No problem! Forex traders turned mainly to risk sentiment, commodities, and last week’s themes for direction during the morning London session.

With no major report on tap, forex traders focused on central bank remarks and geared up for a potentially eventful week ahead.

We got another round of relatively tight trading conditions last week, but Aussie and Greenback weakness were very clearly the main themes. So, what was driving forex price action lately?

Risk aversion returned and commodities fell, so the Aussie and the Kiwi were both under pressure during the morning London session. And interestingly enough, the Greenback rather than the yen was the safe-haven of choice during the session.

A pretty calm day for Asian session forex traders, though a lack of economic releases inspired a bit of profit-taking among high-yielding currencies.

The Greenback had trouble recovering from its post-FOMC minutes hangover, as the lack of hawkishness continued to weigh on the currency.

The pound skyrocketed on positive retail sales data while the yen got weighed down by risk appetite in today’s morning London session. Meanwhile, the Aussie and the Swissy had some rather wonky price action.

The dollar’s forex price action was a mixed bag of nuts, as economic reports got mixed in with risk sentiment.

The tone of the FOMC minutes forced the U.S. dollar to return some of its recent gains since most policymakers didn’t seem so eager to hike rates just yet.