Article Highlights

  • US flash services PMI at 56.3 vs. 57.3 expected, 57.1 previous
  • Gold, oil prices take hits
  • BOJ’s Kuroda speech on tap
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With no major news reports fueling price action, which currencies came out on top during the U.S. forex trading session?

Let’s start with the euro, which continued to inch higher against its major counterparts following surprisingly strong German IfO reports. Still, the common currency’s gains were not enough to offset last Friday’s losses.

EUR/USD rose by another 33 pips to 1.2442, EUR/JPY climbed 35 pips to reach 147.14, and EUR/AUD rocketed by 58 pips to 1.4446.

The comdolls weren’t as lucky throughout the session. Gold prices slipped from its three-week highs as news of China’s surprise rate cut waned, while crude oil prices also fell after Russia offered to cut its own production to convince OPEC to lower its oil output.

AUD/USD fell by another 10 pips to .8614, USD/CAD shot 36 pips higher to 1.1289, and GBP/CAD rocketed by a whopping 81 pips to 1.7731.

Will comdoll bears pursue their cause in today’s Asian forex trading session? The RBNZ’s inflation expectations, which clocked in at 2.06% vs. 2.23% previous, hasn’t affected the Kiwi’s price action as of writing.

The BOJ is also set to print its monetary policy meeting minutes at 12:50 am GMT, followed by a speech by BOJ’s Kuroda at 2:00 am GMT. As hinted in the BOJ’s last policy statement, Kuroda said that the central bank is committed to its 2% inflation target. The BOJ head honcho also added that while a weak yen is good for Japan’s exports, it’s also negatively affecting the economy’s small firms.

Yen crosses have taken small hits since Kuroda’s speech. But will this trend continue throughout the day? Watch your yen pairs closely in case we see a turn in risk sentiment over the next couple of hours!

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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