Article Highlights

  • US initial jobless claims: 294K vs. 280K expected, 282K previous
  • US housing starts: 0.93M vs. 1.04M expected, 0.91M previous
  • US building permits: 1.04M vs. 1.08M expected, 1.10M previous
  • US Philly Fed survey: 7.5 vs. 6.0 expected, 5.0 previous
  • Fed’s Lockhart sees advantages in waiting for stronger data before raising rates
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The dollar was once again the biggest loser in the forex scene, as weak U.S. data and a bit of profit-taking took over the markets.

The Greenback started the U.S. trading session on a weak note after Uncle Sam printed weaker-than-expected initial jobless claims, housing starts, and building permits reports. Though they’re not usually market movers, they made it easy for dollar holders to extend this week’s momentum and take profits from their trades. In fact, they even ignored a strong Philly Fed index reading published a few hours into the session.

It also didn’t help that Atlanta Fed President Dennis Lockhart, a voting member, dampened rate hike expectations. In a speech yesterday, he talked of advantages in waiting for more stable data before raising interest rates this year. If you recall, some market players have priced in a June rate hike from the Fed.

EUR/USD popped up by 32 pips (+0.30%) to 1.0761 while GBP/USD saw a 20-pip jump (+0.13%) to 1.4934. USD/JPY also fell back to its intraday lows near 119.00 while USD/CHF fell by 68 pips (-0.71%) to .9562.

The comdolls also continued to find support from the dollar selloff and a stronger-than-expected Australian jobs release. AUD/USD rose by 24 pips (+0.31%) to .7803 while NZD/USD inched 28 pips higher (+0.37%) to .7671.

Another move of note is USD/CAD, which was influenced by both the dollar weakness and a jump in oil prices. Brent crude oil rose by $0.66 to settle at $63.98 per barrel while U.S. crude oil also popped up by $0.32 to $56.71, its highest in 2015.

USD/CAD plunged by 106 pips (-0.86%) to 1.2190 while CAD/JPY rocketed by 73 pips (+0.75%) to 97.58.

Asian session forex traders don’t have much to look forward to with only Japan’s consumer confidence report on tap at 6:00 am GMT. Analysts are expecting a read of 41.3 from last month’s 40.7 reading, but keep an eye out for any significant hits or misses in case it affects risk sentiment!

Good luck!

See also:

London Session Recap

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