Article Highlights

  • US equities markets out on Martin Luther King Day holiday
  • CA foreign securities purchase: 4.29B USD vs. 7.23B USD expected, 9.54B USD previous
  • WSJ’s Hilsenrath: Fed on track to for 2015 rate hike
  • France’s Hollande: ECB will buy sovereign debt on Thursday
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U.S. equities traders might be out on Martin Luther King Day, but that doesn’t mean we didn’t see action from the major currencies!

The dollar once again gained across the board, possibly on some investors taking off their risky bets ahead of this week’s big events and WSJ’s Jon Hilsenrath repeating that the Fed is on track to raise its interest rates in 2015.

USD/JPY inched 20 pips higher (+0.17%) to 117.58, USD/CHF jumped by 103 pips (+1.19%) to .8796, and GBP/USD slipped by 29 pips (-0.19%) to 1.5115.

The euro was also among the biggest gainers despite Francois Hollande hinting at QE from the ECB on Thursday. One possible reason is that traders who shorted the euro last week are expecting a disappointing QE size from the ECB. At the very least some of them are likely taking off their positions to avoid big currency swings. Of course, it also helped that the French President later clarified his statements, saying that it’s a “hypothesis.”

EUR/USD ended the session at 1.1609 after hitting an intraday high at 1.1639. EUR/GBP also popped up by 15 pips (+0.20%) to .7680, while EUR/JPY climbed 28 pips (+0.21%) to 136.50.

Asian session forex traders are on the lookout for big moves today with China scheduled to print its GDP, retail sales, industrial production, and fixed asset investment numbers at 2:00 am GMT. Look out for significant hits and misses in the reports, as they could dictate risk sentiment until the London session starts.

Good luck and good trading!

See also:

London Session Recap

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