Article Highlights

  • S&P downgrades Russia’s credit rating to junk
  • CHF weakens on possible SNB intervention
  • AU NAB business confidence and China’s CB leading index reports on tap
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Though some US traders were preparing for a blizzard and there was no major economic data printed, forex traders still saw some action yesterday. What happened to the major currencies?

Franc pairs received a nice boost on the back of rumors that the SNB has stepped in to buy EUR/CHF. USD/CHF ended the session with a 114-pip gain (+1.28%) to .9031 while EUR/CHF jumped by 143 pips (+1.43%) to 1.0171.

Yen bears also got busy despite the lack any apparent catalyst for the move. USD/JPY inched 14 pips higher (+0.12%) to 118.48 while EUR/JPY gained 36 pips (+0.27%) to 133.44, GBP/JPY rocketed by 122 pips (+0.68%) and AUD/JPY jumped by 28 pips (+0.30%) to 93.86.

Even the European currencies saw some action against the Greenback. EUR/USD bounced by 18 pips (+0.16%) after getting pummeled during the early London session, while GBP/USD showed an 87-pip recovery (+0.58%), possibly on BOE’s Kristin Forbes’ remarks that interest rates may rise sooner than expected if inflation rebounds strongly after its recent decline.

Commodity-related currencies weren’t as lucky against the dollar. With oil prices still taking hits and investors expecting a dovish monetary policy statement from the RBNZ this week, it’s no surprise that USD/CAD closed 58 pips higher than its intraday low at 1.2464 while NZD/USD dropped by 22 pips (-0.30%) to .7415.

Will Asian session forex traders extend the comdolls’ weak streak? Australia is set to print its NAB business confidence data at 12:30 am GMT while China is scheduled to release its CB leading index numbers at 2:00 am GMT.

These reports don’t usually cause sustained moves for the Asian currencies, but keep an eye out for significant hits or misses in case they influence price action after all.

See also:

London Session Recap

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