Article Highlights

  • CA housing starts: 190K vs. 175K expected, 151K previous
  • CA unemployment rate: 6.8% vs. 6.9% expected, 6.8% previous
  • CA employment change: 28.7K vs. -0.5K expected, -1K previous
  • UK NIESR GDP estimate remains at 0.6%
  • Japan trade balance and BOJ minutes due today
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The dollar ended the week with mixed results, as the lack of economic data inspired a bit of profit-taking among forex traders.

Uncle Sam didn’t release any major news last Friday, which is probably why some dollar bulls took the opportunity to take profits from their long dollar trades. If you recall, the Greenback had been on a roll as forex traders priced in a Fed rate hike this year.

EUR/USD shot up to a session high of 1.0635 before closing at 1.0607 while GBP/USD also inched 60 pips higher (+0.41%) to 1.4669 before settling at 1.4646. USD/JPY, which already fell on a dovish BOJ official speech, steadied just above the 120.00 handle.

The Loonie got more attention from investors, thanks to Canada printing stronger-than-expected jobs numbers. It also didn’t hurt that oil prices inched higher due to a report on lower oil stockpiles in the U.S. Loonie bulls didn’t get a good momentum though, since a closer look at Canada’s jobs numbers reveals that it was part-time jobs that boosted the reports.

Still, USD/CAD dropped by 61 pips (-0.48%) to 1.2578 throughout the session while CAD/JPY inched 26 pips higher (+0.29%) to 95.55. Heck, even AUD/USD managed to sneak in 36 pips (+0.47%) to .7682!

Will we see more comdoll gains today? Japan has published its core machinery orders report (-0.4% vs. -2.2% and -1.7% previous) and the BOJ has released its monetary policy meeting minutes. Market players aren’t expecting any major revelations from the central bank, but keep close tabs on it nonetheless in case an official says something that can affect risk sentiment.

China is also set to print its trade numbers at 1:00 am GMT. The report is closely-watched by a lot of traders, so make sure you keep your eyes glued to the tube for any news that might affect price action over the next couple of hours!

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.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!