Article Highlights

  • AU MI leading index: -0.2% vs. 0.1% previous
  • Japan flash manufacturing PMI: 52.5 vs. 52.6 previous
  • PBoC raises USD/CNY midpoint…again
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Volatility was as tight as my holiday pants, as forex traders gear up for today’s monster economic report releases.

Major Events:

All eyes on the Fed – Forex trading was tight during the session, as traders gear up for the Fed event coming up in a few hours. There was a bit of risk-taking though, after yesterday’s stronger-than-expected U.S. data boosted confidence on the world’s largest economy. Overall it looks like we won’t see any volatility until Janet Yellen and her gang drop the bass on its interest rate song.

Major Currency Movers:

USD – The Greenback’s price action was as mixed as a bag of beans, as risk-taking got mixed in with profit-taking and increased confidence over Uncle Sam’s reports.

EUR/USD popped up by 18 pips (+0.17%), GBP/USD steadied around the 1.5050 area, USD/JPY inched 16 pips higher (+0.13%), and USD/CHF stayed at the .9900 area.

Watch Out For:

  • 8:00 am GMT to 9:00 am GMT: French, German, and Euro Zone flash manufacturing and services PMIs. Analysts are generally expecting slight decreases from last month’s figures though we aren’t likely to see any action due to traders not committing to positions ahead of the Fed event.

See more:

U.S. Session Forex Recap

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

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