- US final GDP: 2.2% vs. 2.4% expected, 2.2% previous
- US final UoM consumer sentiment: 93 vs. 92 expected, 91.2 previous
- Fitch downgrades Greece from B to CCC
- Oil prices fall on profit-taking, possible increase in supply
- European region sets the clock 1 hour forward
Forex price action was mixed during the U.S. session, as traders focused on trading commodities. What happened to the major currencies?
The Greenback showed minimal gains against its counterparts, likely on mixed reports from Uncle Sam. While the final GDP reading failed market expectations, the final UoM consumer sentiment report also printed slightly higher than market estimates. Of course, as I mentioned in my London session report, final readings don’t tend to get a lot of attention compared to their earlier releases.
EUR/USD spiked to an intraday high of 1.0948 before settling in at 1.0887 while GBP/USD found resistance at the 1.4900 area to close at 1.4873. The dollar also failed to make significant headway against its low-yielding counterparts with USD/JPY stalling at 119.25 and USD/CHF actually slipping by 35 pips (-0.36%) to .9616.
Forex traders were more interested in pricing in changes in oil prices, which reflected a possible profit-taking from Thursday’s rally. It also helped commodity bears that Iran and other major players like the U.S., China, Russia, Germany, France, and Britain are expected to work on a deal that could ease oil sanctions in Tehran. If this happens, then we might see more oil supply in the markets.
Not surprisingly, the oil-related Loonie was down across the board. USD/CAD rocketed by 115 pips (+0.92%) to 1.2603, CAD/JPY fell by 100 pips (-1.05%) to 92.49, and EUR/CAD jumped by 179 pips (+1.32%) to 1.3738.
Even other comdolls were affected by the decline in oil prices. AUD/USD slipped by 64 pips (-0.82%) to .7735 and NZD/JPY lost 24 pips (-0.27%) to 90.13.
Asian session forex traders don’t have much to look forward to with the data docket empty for the next few hours. Take note though, that the European region is setting its clock one hour forward. The change can affect the data releases and your trades, so make sure you make the adjustments needed in your trades!
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!