Article Highlights

  • US initial jobless claims: 282K vs. 290K expected, 291K previous
  • US March services PMI: 58.6 vs. 57.0 expected
  • BOC Governor Poloz says previous rate cut has bought time
  • ECB’s Draghi gives positive speech, fails to boost the euro anyway
  • Saudi air strikes continue to weigh on risk sentiment
  • Japan CPI, household spending, employment, and retail sales numbers on tap
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Dollar bulls got back in the forex game yesterday, as better-than-expected U.S. reports weighed heavier than good news from other regions.

The euro could have had a good day if forex traders had only focused on Draghi’s speech. The ECB head honcho said that its QE operation is already helping the economy, but maintained that we’re still not seeing a structural recovery.

Unluckily for the euro (and other high-yielding currencies), investors had turned their attention to the U.S. initial jobless claims hitting its lowest numbers in five weeks and Saudi Arabia’s ongoing air strikes in Yemen. Heck, U.S. session traders even shrugged off strong retail sales figures from the U.K.!

EUR/USD fell by a whopping 109 pips (-0.99%) throughout the session, while GBP/USD suffered a similar fate with its 80-pip decline (-0.54%) to 1.4849. USD/JPY also jumped 48 pips (+0.40%) to 119.19 and USD/CHF rose by 81 pips (+0.85%) to .9630.

Even the comdolls took hits against the Greenback despite improvements in gold and oil prices. AUD/USD slipped by 38 pips (-0.48%) to .7828 while USD/CAD hit an intraday low at the 1.2420 area and jumped 52 pips (+0.42%) to 1.2482.

Will the dollar’s strength extend to the Asian session? Forex traders can keep their eyes on possible reactions to today’s Japanese data dump. A few hours ago the Land of the Rising Sun had printed tier 1 reports like its inflation, employment, retail sales, and household spending numbers.

A quick look reveals mixed results with retail sales missing expectations, CPI coming in mixed, and employment numbers meeting market estimates. This means risk sentiment could go in either direction today, so make sure you stick around in case traders finally decide on which direction to pursue.

Good luck!

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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