- IMF cuts global growth forecasts from 4.0% to 3.8% in 2015
- UK NIESR GDP estimate down to 0.7% in September vs. 0.8% in August
- US consumer credit prints at 13.5 billion USD vs. 20 billion USD expected
- US IBD consumer optimism still at 45.2 vs. 45.1 expected
- CA building permits down by 27.3% in August vs. 6.5% decline expected and 11.6% uptick last month
Currency price action was a mixed bag of beans, as bargain hunters clashed with news traders during the U.S. forex trading session.
The dollar gave up a few pips after FOMC members Dudley and Kocherlakota tempered rate hike speculations by pointing to low inflation. Kocherlakota believes the lack of demand for goods and services is a signal that people remain out of work, while Dudley also emphasized that theres still too much slack in the labor market.
It also didnt help currency bulls that the IMF had just downgraded its global growth forecasts. It now expects a 3.8% growth in 2015, down from its 4.0% estimates in July. The IMF cited rising geopolitical tensions and frothy levels of stock markets that could lead to financial market correction. Yikes!
Luckily for the Greenback, its bulls were waiting around the psychological support levels. EUR/USD jumped by 49 pips to 1.2661 while USD/JPY only slid by 50 pips to 108.04. USD/CHF also slipped by 33 pips to .9572 and GBP/USD shot up by 17 pips to just below the 1.6100 handle.
The dollar also wasnt as unfortunate against the comdolls. AUD/USD and NZD/USD remained in tight intraday ranges after their strong performances during the Asian and London forex trading sessions. We could have seen dollar strength on USD/CAD after Canada printed a weak building permits report, but comdoll bears mostly shrugged it off since the decline had followed three consecutive strong readings.
Lets see if comdoll bulls and bears will have a more interesting tug-o-pips war during the Asian session. Our forex calendar reveals that well have Chinas HSBC services PMI report to look forward to at 1:45 am GMT, followed by the BOJs monthly report and economy watchers survey results at 5:00 am GMT. These reports dont usually cause sustained intraday moves among the major currencies, but keep close tabs on your trades in case forex traders find other catalysts today!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippins Daily Chart Art for some pip-locking technical setups!