Article Highlights

  • US final manufacturing PMI: 57.3 vs. 57.5 expected and previous
  • US ISM manufacturing PMI: 55.3 vs. 55.9 expected and 55.4 previous
  • US IBD/TIPP economic optimism: 45.6 vs. 48.0 expected and 47.7 previous
  • US Treasury yields rises by 5 basis points to 2.57%
  • Dow and S&P 500 hit record highs
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It’s not even the 4th of July and we’ve already seen fireworks! Yesterday investors had greeted a new trading quarter by pushing the major currencies all over the charts.

The dollar came out as the biggest loser despite the Dow and S&P 500 hitting record highs and the U.S. Treasury yields jumping to its highest since last Tuesday. One possible reason is that financial planners had loaded up on their high-yielding positions at the beginning of a new trading quarter. Another possible reason is that they’re not expecting this week’s NFP report to make any dent on the Fed’s current tapering schedule.

EUR/USD stayed just below the 1.3700 handle and USD/JPY was capped at 101.50 but GBP/USD rocketed to 1.7167, AUD/USD jumped 44 pips to .9496, USD/CAD slipped by another 26 pips to 1.0633, and NZD/USD snuck in another 12 pips to .8772.

While the dollar was sliding down the charts, the pound was enjoying a nice boost. Thanks to a positive UK manufacturing PMI report, the pound bulls found it easy to reinforce the upside technical breaks in some major pound pairs.

Aside from Cable breaking above 1.7100, GBP/JPY had also ventured above the 174.00 territory. Even EUR/GBP slipped by another 8 pips to .7975 throughout the US forex trading session while GBP/CHF jumped by 18 pips to 1.5224.

Will forex price action be as exciting in today’s Asian session trading? Australia is set to print its trade balance data at 1:30 am GMT and word on the hood is that we’re about to see a weaker reading than last month. Keep your eyes on your comdoll trades in case we see any surprises from this report!

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!