Article Highlights

  • US initial jobless claims: 291K vs. 293K expected, 290K previous
  • US current account balance: -$113.5B vs. -$104.1B expected, -$98.9B previous
  • US leading indicators: 0.2% as expected vs. 0.2% previous
  • US Philly Fed index: 5.0 vs. 7.2 expected, 5.2 previous
  • BOE economist Haldane weighs on GBP
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The dollar continued to gain against its major counterparts, as U.S. session forex traders extended yesterday’s existing intraday trends.

Yesterday we saw Uncle Sam’s current account balance and Philly Fed index come in lower than market expectations. Luckily for the Greenback, forex traders were more interested on pricing in a future rate hike from the Fed.

EUR/USD slipped by another 55 pips (-0.51%) to 1.0644 while USD/JPY also jumped by 31 pips (+0.26%) to 120.97 and USD/CHF inched 17 pips higher (+0.18%) to .9914.

The pound saw more action than its counterparts thanks to Bank of England (BOE) Chief Economist Andy Haldane’s dovish remarks. In a speech yesterday, he said that risks to weak inflation may persist. Not only that, but policy makers must also be ready to cut rates if needed. Yikes!

Not surprisingly, GBP/USD saw a 170-pip decline (-1.14%) to 1.4726 while EUR/GBP shot up by 48 pips (+0.64%) to .7228 and GBP/JPY dropped by 163 pips (-0.91%) to 178.12.

The docket is uneventful for Asian session forex traders, as they only have the BOJ’s meeting minutes and New Zealand’s credit card spending to price in. These reports don’t usually cause sustained moves for their respective currencies, so keep an eye out for any news that might affect risk sentiment.

Good luck!

See also:

London Session Recap

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