Article Highlights

  • CA wholesale sales up by 1.8% in September vs. 0.0% growth in August
  • US CPI clocks in at 0.0% vs. 0.1% decline expected, 0.1% growth previous
  • US core CPI up b 0.2% vs. vs. 0.1% uptick expected, 0.1% growth last month
  • US initial jobless claims down to 291K vs. 294K expected, 293K previous
  • US flash manufacturing PMI down to 54.7 vs. 56.3 reading expected, 55.9 reading previous
  • US leading indicators up by 0.9% vs. 0.6% uptick expected, 0.7% growth previous
  • US existing home sales clocks in at 5.26M vs. 5.16M expected, 5.18M previous
  • US Philly Fed surprises with 40.8 reading vs. 18.5 reading expected, 20.7 reading previous
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Is the dollar rally losing momentum? The biggest story during the U.S. forex trading session is the Greenback’s failure to extend its rally despite a positive data dump from Uncle Sam.

Yesterday traders were expecting explosive moves from the dollar on a slew of economic data from the U.S. Forex traders focused on the core inflation report, which came in better-than-expected despite the decline in oil prices and the Philly Fed manufacturing index, which rose to its highest reading since December 1993. Yowza!

Unfortunately for dollar traders, some analysts were quick to throw cold water to the dollar’s fire, saying that the figure released was probably wrong and is unlikely to hold up.

This is probably why EUR/USD remained in a tight range around the 1.2555 area throughout the session, while USD/JPY lollygagged just above the 118.00 handle, GBP/USD traded around 1.5700, and USD/CHF was locked in the .9595 area.

The Greenback also lost to the comdolls, thanks to gold prices inching $12 higher to $1,195 and WTI crude rising by $1.00 to $75.58. AUD/USD climbed 15 pips to .8630, while NZD/USD shot up 10 pips to .7872 and USD/CAD slipped by 22 pips to 1.1306.

Will we see more Greenback weakness today? We don’t have anything on tap during the Asian trading session, so watch out for extensions of the previous session’s price action. Also, keep your eyes peeled for possible end-of-week profit-taking!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!