Article Highlights

  • Japan’s June retail sales up 0.9% y/y vs. 0.8% forecast, 3.0% previous
  • RBNZ Gov Wheeler: NZ economy isn’t weak enough to warrant a large rate cut
  • Swiss UBS consumption indicator due
  • GfK German consumer climate index unchanged at 10.1?
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Talk about pre-FOMC jitters! Dollar pairs have been treading extra carefully across the forex charts, waiting to find out what the Fed has in store. EUR/USD is trading around 1.1060 (+0.02%), GBP/USD is holding steady above 1.5600 (+0.15%), and USD/JPY is hovering around 123.50 (+0.22%).

Yen pairs saw a bit more action, thanks to Japan’s retail sales report for June, which showed a slightly better than expected 0.9% increase year-over-year versus the projected 0.8% uptick. However, this is weaker compared to the previous month’s 3.0% annualized gain just after the sales tax hike last year kicked in.

EUR/JPY popped up to a high of 136.81 then retreated to the 136.60 area (-0.03%) while AUD/JPY logged in a 22-pip loss (-0.25%) to 90.40. GBP/JPY is down 8 pips (-0.05%) and NZD/JPY is up 20 pips (+0.25%), buoyed by remarks from RBNZ Governor Wheeler who explained that the New Zealand economy isn’t weak enough to warrant a large interest rate cut. NZD/USD is enjoying a nice 22-pip lead (+0.34%) above the .6700 halde as of this writing.

Up ahead, forex traders might still have a chance to scalp some pips off the medium-tier releases lined up. The Swiss UBS consumption indicator is due at 7:00 am GMT and it might show an improvement from the previous 1.73 reading. Germany is set to release its July GfK consumer climate index around the same time and might not show any changes from the previous 10.1 reading in June, although a bit of improvement might be possible since the Greek debt fiasco has already subsided. Lastly, the U.K. has its mortgage approvals, net lending to individuals, and CBI realized sales numbers due starting 9:30 am GMT and might spur volatility for pound crosses.

Dollar pairs might keep consolidating ahead of the much-anticipated Fed policy announcement later on so y’all better spend some time reading up on my buddy Forex Gump’s Forex Trading Guide for the FOMC statement.

See also:

U.S. Session Recap

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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!