- US Empire State manufacturing index clocks in at 10.2 vs. 12.0 expected, 6.2 previous
- US industrial production down by 0.1% in October vs. 0.2% uptick expected, 0.8% growth last month
- CA foreign securities purchases shows 4.37B CAD figure vs. 11.32B CAD expected
- Draghi dovish in his speech yesterday
Forex price action was a mixed bag of beans during the U.S. session, as traders traded a few economic reports and Draghi’s dovish speech.
With no major economic report on tap and with Draghi giving a speech yesterday, the euro was once again the main headliner the forex arena. Draghi talked about a lot of concerns in his speech in Brussels yesterday, but the most important takeaways was that he believes that economic outlook in the euro region is “increasingly sobering,” and that the ECB’s asset purchases program could include government bonds. Overall, Super Mario Draghi’s tone was dovish, which had weighed on the common currency across the board.
EUR/USD fell by 46 pips to 1.2450, EUR/JPY slipped by 30 pips to 144.97, EUR/GBP dropped by another 28 pips to .7961, and EUR/NZD fell by 45 pips to 1.5732.
Mild dollar strength was also seen during the U.S. forex trading session, as the lack of reports inspired some dollar bulls to take advantage of the selloff seen during the Asian session. USD/JPY inched 19 pips higher to 116.45 while USD/CHF jumped by 38 pips to .9651.
Even major comdoll pairs showed mixed price action. Both gold and oil fell, but AUD/USD slipped by only 22 pips to .8709 and NZD/USD ended the session 6 pips higher at .7915. Meanwhile, USD/CAD fell by 11 pips to 1.1297.
Will we see more volatility from major comdolls today? The RBA could inspire some volatility with its meeting minutes at 12:30 am GMT. Analysts aren’t expecting anything new from the central bank with its lack of changes in its last meeting, but watch your Aussie pairs closely in case the RBA gives hints on its biases for future monetary policy decisions.
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