Article Highlights

  • CA new house price index: -0.1% vs. 0.1% expected, 0.1% previous
  • CA capacity utilization rate: 83.6% as expected vs. 83.2% previous
  • US initial jobless claims: 289K vs. 305K expected, 325K previous
  • US retail sales: -0.6% vs. 0.3% expected, -0.8% previous
  • US core retail sales: -0.1% vs. 0.5% expected, -1.10% previous
  • US business inventories: 0.0% vs. 0.1% expected, 0.0% previous
  • US Federal budget balance: -$192.3B vs. -$191.0B expected, -$17.5B previous
  • Japan’s revised industrial production numbers due
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Profit-taking was the name of the game during the U.S. trading session, as forex traders squared off long dollar trades at the release of Uncle Sam’s less-than-stellar retail sales data.

The report surprisingly printed a 0.6% decline after falling by 0.8% the previous month. Market players had expected a 0.3% uptick for consumer buying. Bad weather is a possible culprit for the weakness, although consumers are also starting to save more of their discretionary income.

EUR/USD hit an intraday high of 1.0684 before closing just above the 1.0600 handle. USD/JPY also fell to an intraday low of 120.67 before capping the day at 121.29.

Even the comdolls had a good day against the Greenback. Of course, it didn’t hurt that Australia printed a positive jobs report and the RBNZ refrained from cutting its rates.

AUD/USD reached a new weekly high at.7731 before closing at .7708 while NZD/USD hit the .7740 area before capping the day at .7388. Falling oil prices weighed on the Loonie though, and pushed USD/CAD 26 pips higher (+0.21%) to 1.2685.

The pound was another notable currency as it surprisingly fell across the board. Though the U.K. printed a better-than-expected trade balance report, forex traders had focused on Mark Carney’s remarks to a local newspaper. Carney signaled that he’s in no rush to raise rates, saying that the pound’s strength and low inflation could last for a while.

GBP/USD dropped by a whopping 104 pips (-0.69%) to 1.4881, while GBP/JPY slipped by 74 pips (-0.41%) to 180.60. Even EUR/GBP saw pound weakness with its 46-pip ascent (+0.65%) to .7146.

Will high-yielding currencies feel the wrath of Friday the 13th? Only Japan’s revised industrial production numbers is scheduled today, so Asian session forex traders will likely focus on risk sentiment and possible end-of-week positioning. Keep your eyes peeled for any news that might affect risk-taking today!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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