Article Highlights

  • US manufacturing PMI: 54.1 vs. 54.2 expected and previous
  • US construction spending: -0.6% vs. 0.5% expected
  • US ISM manufacturing PMI: 51.5 vs. 52.0 expected, 51.5 previous
  • US final UoM consumer sentiment: 95.9 vs. 96.0 expected, 95.9 previous
  • Data dump from China due today
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Forex traders started the month with a bang, as they pushed the dollar higher despite weak reports from the U.S.

Last Friday Uncle Sam’s manufacturing and ISM manufacturing PMI as well as construction spending reports all missed market expectations. It didn’t stop currency bulls from attacking the Greenback though, likely because they’re pricing in uncertainty over the next couple of days.

Aside from the NFP-related reports from the U.S., we’ll also see the RBA release its monetary policy statement, New Zealand, Canada, and Australia print their employment numbers, and the U.K. conduct its Parliamentary elections this week. Bet we’ll see more action than we did from the Mayweather-Pacquiao fight!

In any case, uncertainty and possibly start-of-month positioning was enough to send the dollar higher across the board. EUR/USD hit an intraday high of 1.1290 before closing with a 54-pip loss (-0.48%) at 1.1208 while GBP/USD extended its London session weakness and slid by a whopping 125 pips (-0.82%) to 1.514. USD/JPY also showed dollar strength with its 44-pip rise (+0.37%) to 129.18.

The comdolls also registered losses against the Greenback, thanks in part to weaknesses in gold and oil prices. It also didn’t help that forex traders might be taking profits from their long comdoll trades ahead of this week’s major reports.

AUD/USD fell by 39 pips (-0.50%) to .7837 while USD/CAD popped up by 51 pips (+0.42%) to 1.2158 and NZD/USD slid by 44 pips (-0.58%) to .7534.

Japan is out for its Greenery Day bank holiday today, but it’s still a big day for Asian session forex traders with Australia releasing its MI inflation gauge data at 12:30 am GMT, followed by its building approvals numbers and ANZ job ads data at 1:30 am GMT.

Last but not the least, China will print its HSBC final manufacturing PMI report at 1:45 am GMT. Market players are expecting a 49.4 reading after clocking in at 49.2 last month, but watch out for any significant hits or misses, as it could affect risk-taking until the London session starts!

See also:

London Session Recap

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