- US new home sales: 412K vs. 429K expected, 422K previous
- US flash services PMI: 58.5 vs. 59.2 expected, 60.8 previous
- S&P 500 breaches 2000 mark for the first time
- NZ trade balance disappoints with a trade deficit
With U.K. traders out for Summer Bank Holiday and the US not releasing major economic data, volatility during the US forex trading session was understandably muted.
New home sales in July clocked in a four-month low of 412,000 in July, which suggested that housing recovery in the US is losing momentum. Investors mostly paid attention to the S&P 500 though, which broke above the 2,000 mark for the first time in history. Apparently, market players were encouraged from Janet Yellen’s speech last weekend, which hinted that the Fed is still planning to keep its rates low in the foreseeable future.
The dollar didn’t show clear direction across the board with EUR/USD lollygagging at the 1.3200 psychological handle while GBP/USD slipped by 6 pips to 1.6582 after hitting an intraday high at 1.6599. USD/JPY and USD/CHF also traded in tight ranges with the former staying below 104.00 while the latter found support at the .9150 area.
Comdoll traders had a more interesting forex trading session, as traders price in rumors of a Burger King-Tim Hortons merger in Canada and a potentially weak trade balance release in New Zealand. USD/CAD popped up by 26 pips to 1.0981 throughout the session while NZD/USD closed with a 13-pip slip to .8344.
Since New Zealand already printed its trade data a couple of hours ago, Asian session forex traders only have China’s CB leading index at 2:00 am GMT to look forward to. Watch out for any surprises or any late traders pricing in New Zealand’s weak reports!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!