Pip Diddy

It was a see-saw day for forex traders, as a burst of risk appetite fizzled out on weaker economic data, lower oil prices, and a strong yen.

It was all about the NFP on last Friday’s U.S. trading session, as forex market watchers reconsidered the idea of a potential Fed hike in the coming months.

The forex trading week has come and gone. And this week’s themes were Greenback and pound weakness, as well as Kiwi strength. So, what was driving forex price action this week?

Today’s another NFP Friday, so volatility was a bit more subdued than normal during today’s morning London forex session. However, currencies were clearly on the move, as forex traders turned mainly to market sentiment for direction.

Risk aversion was the name of the game during the Asian session, as forex traders shrugged off China’s strong PMIs ahead of today’s NFP report.

The Greenback was off to a weak start during the U.S. session but was able to recover against its forex peers thanks to end-of-the-month profit-taking.

Forex price action was a bit choppy during today’s morning London session, with many currency pairs bound in tight ranges. The only clear movers were the Greenback and the yen, and they were both weak.

Month-end flows and a bit of catching up dominated the forex newswires during the Asian session, and boosted the dollar and the yen across the board.

The U.S. dollar made a rebound against its forex counterparts, boosted in part by slightly stronger than expected ADP jobs data.

Fed Head Yellen’s dovish tone from yesterday was being priced-in during today’s morning London forex session, resulting in a broad-based commodities rally and plenty of risk appetite that fueled demand for the higher-yielding currencies.