Article Highlights

  • CA current account -16 billion CAD vs. -17 billion CAD expected
  • US durable goods orders down by 1.0% vs. -0.7% expected
  • US core durable goods orders grew by 1.1% vs. -0.3% expected
  • US initial jobless claims at 348K vs. 345K estimates
  • Yellen’s testimony causes risk appetite
  • BOE’s Miles and Dale hint at future rate hikes
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Talk about intraday reversals! The major currencies started the U.S. session in the red but soon turned back up as Yellen made pips rain with her comments.

Fed Chairwoman Janet Yellen caused broad risk appetite among forex traders when she recognized that extreme weather was partly to blame for the recent spots of weaknesses in the economy. This comforted investors who were worried that U.S. fundamentals in general was weakening. She also assured that the Fed will continue with its current taper schedule unless reports warrant a shift in their sentiment.

At Yellen’s speech EUR/USD had bounced from its 1.3650 support and went back above 1.3700 while Cable popped up to retest the 1.6700 area. Even USD/JPY, which was weighed by yen strength in the London session, rose back up from 101.70 to 102.20 during the U.S. session.

Today we have a Japanese data dump on schedule. The Land of the Rising Sun is set to print its CPI, industrial production, unemployment numbers, and retail sales figures at 11:30 pm GMT. Traders generally expect weaker reports from Japan but keep an eye out in case we see surprises!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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!