Article Highlights

  • US initial jobless claims: 298K vs. 303K expected and 312K previous
  • US flash manufacturing PMI: 58.0 vs. 55.7 expected and 55.8 last month
  • US Philly Fed index: 28.0 vs. 19.7 expected and 23.9 previous
  • US existing home sales: 5.15 million vs. 5.02 million expected and 5.02 million last month
  • US CB leading index: 0.9% vs. 0.6% expected and 0.3% previous
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Think a round of positive US reports would translate to another Greenback rally? Think again! Short covering was the name of the game in yesterday’s US forex trading session, as investors play it safe ahead of this weekend’s Jackson Hole Summit.

The dollar failed to find support from a positive manufacturing PMI, Philly Fed index, and existing home sales data. In fact, EUR/USD popped up by 16 pips to 1.3281 and GBP/USD only slipped by 10 pips to 1.6577 despite weak reports released from both the euro zone and the UK earlier in the day.

Comdoll bulls also got busy during the US forex session. AUD/USD popped up by 18 pips to .9301 and NZD/USD rose by 25 pips to .8406 even though data from China printed earlier in the day revealed that manufacturing had grown at a slower pace in August. Meanwhile, USD/CAD also got off its intraday highs near 1.0990 and ended the day at around 1.0945.

Will we see more Greenback weakness today? No major report is scheduled until the US session when Canada prints its CPI and retail sales numbers. Of course, that doesn’t mean that we won’t see volatility. Watch your charts closely to see if Asian forex traders follow up on yesterday’s profit-taking vibe ahead of the Jackson Hole Summit!

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!