Article Highlights

  • CA housing starts up by 195K in April cs. 157K in March
  • CA house price index steady at 0.2% as expected
  • US initial jobless claims at 319K vs. 325K expected
  • Draghi press conference weighs on the euro
  • Yellen: recovery is on track but keep an eye on the housing market
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What a day for the forex market! As I mentioned in my London session update, the BOE and ECB decisions proved supportive of the European currencies as they decided not to make changes to their monetary policies.

The bomb dropped during the early U.S. session when Mario Draghi took center stage. About 20 minutes into his speech he hinted that the ECB is not comfortable with the euro’s strength in the context of low inflation and is ready to act when needed. What’s more, he also said that the Governing Council is “comfortable with acting next time.” Yikes!

Not surprisingly, the euro fell across the board. EUR/USD dropped from just pips below 1.4000 to the 1.3840 area. EUR/JPY was also one of the biggest losers with almost a 170-pip slide and affected forex price action of the yen crosses. The common currency also showed steep losses against the pound, Aussie, and the Loonie.

The Loonie was one of the biggest gainers of the session after Canada printed a better-than-expected housing data. Word around the hood is that traders are also preparing for a strong Canadian employment report, which will come out today at 12:30 pm GMT.

Before that though, we’ll first see the RBA’s monetary policy statement, as well as China’s CPI numbers at 1:30 am GMT. Analysts aren’t expecting changes from the RBA, but they’re expecting weaker inflation numbers from China. Will these reports have significant impact on the comdolls today?

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!