Article Highlights

  • US initial jobless claims higher at 295K vs. 287K expected, 294K previous
  • US new home sales falls by 11% at 481K vs. 520K expected, 540K previous
  • US Markit flash manufacturing PMI lower at 54.2 vs. 55.7 expected and previous
  • EUR bounces on optimism over Merkel-Tsipras meeting, possible short-covering
  • Gold, oil, and U.S. equities jump higher
  • low-tier data from Japan on tap
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The Greenback swam in a river of red during the U.S. session, as forex traders priced in weak data from Uncle Sam.

Initial jobless claims jumped to 295,000 when market players had expected a 287,000 reading. Markit’s reading on U.S. manufacturing also disappointed at 54.2 when analysts had forecasted a 55.7 reading.

The biggest shocker though, was new home sales data falling by 11% in March after hitting a seven-year high in February. Though it probably won’t enough to sway the Fed from its rate hike plans, it was enough to cancel out the good vibes from this week’s better-than-expected existing home sales report.

USD/JPY plunged by 50 pips (-0.42%) to 119.51 while USD/CHF canceled most of its previous day gains and fell by 101 pips (-1.05%) to .9541. GBP/USD, which was weighed by weak a U.K. retail sales report, also rose by 32 pips (+0.21%) to 1.5060.

Another headline-maker was the euro, which found support from optimism over a meeting between Germany’s Merkel and Greece’s Tsipras. Aside from the possibility of a bailout deal being reached sooner than later, analysts believe that euro bears have also started covering their shorts ahead of this weekend’s meeting between Greece and other euro zone leaders.

EUR/USD broke above 1.0800 and logged a 55-pip (+0.51%) rise to 1.0825 while EUR/JPY inched 12 pips higher (+0.09%) to 129.38 and EUR/GBP jumped 12 pips higher (+0.17%) to .7188.

Last but definitely not the least moves to note are from the comdolls, which had a good session against the Greenback. Thanks to overall dollar weakness and small rebounds in gold and oil prices, AUD/USD was able to see a 46-pip (+0.60%) gain to .7780 while NZD/USD inched 34 pips higher (+0.45%) to .7593 and USD/CAD slipped by 81 pips (-0.66%) to 1.2146.

Asian session forex traders don’t have much to look forward to today with only Japan’s CSPI numbers on tap at 1:50 am GMT. The report reflects prices corporations pay for services and doesn’t usually have sustained impact on yen pairs.

Japan’s all industries activity out at 5:30 am GMT is also a usual non-mover, though you can watch out if there are significant hits or misses from the expected 1% decline after rising by 1.9% last month.

Good luck!

See also:

London Session Recap

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