Article Highlights

  • US CPI: -0.4% vs. -0.4% expected, -0.3% previous
  • US CPI (ex. food and energy): 0.0% vs. 0.1% expected, 0.1% previous
  • US industrial production: -0.1% vs. -0.1% expected, 1.3% previous
  • US preliminary UoM consumer sentiment: 98.2 vs. 94.1 expected, 93.6 previous
  • US markets closed on Martin Luther King Day holiday
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Thanks to a lack of new economic catalyst, the dollar extended its domination against its major counterparts. Here’s what happened during the U.S. forex trading session.

Uncle Sam could have started the session on a weak note when it published worse-than-expected inflation and industrial production reports. Luckily for Greenback bulls, investors paid more attention to strong annualized inflation rates and a better-than-expected University of Michigan consumer sentiment reading. It also helped that 10-year U.S. Treasury yields inched 12 basis points higher to 1.84%.

EUR/USD dropped by 20 pips (-0.17%) to 1.1569 after falling to an 11-year low of 1.1460; USD/JPY shot up by 103 pips (+0.88%) to 117.61, and GBP/USD slipped by 12 pips (-0.08%) to 1.5159. An exception was USD/CHF, which fell by another 183 pips (-2.09%) to .8566 on more franc strength.

Aussie bulls also got busy throughout the session, possibly on the back of rising gold prices (up by $17.70 to $1,280) and Australia’s solid employment numbers from the Asian session.

AUD/USD ended the session 25 pips higher (+0.30%) at .8236 while AUD/JPY jumped by 113 pips (+1.18%) to 96.87, and EUR/AUD fell by 67 pips (-0.48%) to 1.4047.

Will Asian forex traders pick up momentum for the dollar and the Aussie? The Land Down Under is set to print its new motor vehicle sales data at 12:30 am GMT today. A reading above last month’s 0.6% decline could get the party started for comdoll bulls.

At 4:30 am GMT Japan will release a slew of data including capacity utilization, final industrial production numbers, and consumer confidence report. Significantly weaker-than-expected numbers could spark talks of more BOJ easing and weaken the yen across the board, so keep an eye out for these releases!

See also:

London Session Recap

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

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

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