Article Highlights

  • U.S. markets out on Memorial Day holiday
  • Fed’s Fischer: debate is between early and gradual or late and steep rate hikes
  • Fed’s “Time is near” for rate hikes
  • New Zealand trade balance on tap
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U.S. traders were out on Memorial Day holiday, so forex price action was unsurprisingly uneventful during the U.S. trading session.

The dollar made a few small waves, thanks in part to Fed officials backing Janet Yellen’s hawkish statements last week. For instance, Reserve Bank of Cleveland President Loretta Mester said that “the time is near” for the Fed to hike its rates while Federal Reserve Vice Chairman Stanley Fischer noted that the Fed is debating whether or not the rate hikes will be “early and gradual” or “late and steep.”

The dollar strength was more prominent against the comdolls, which took steps back despite slight upticks in gold and oil prices.

AUD/USD slipped by 5 pips (-0.06%) to .7825 while USD/CAD popped up by 21 pips (+0.17%) to 1.2311.

Greece was also under the spotlight thanks to last weekend’s Spanish elections emphasizing the increased influence of Podemos, a Syriza-like party against austerity measures, and Greek Finance Minister Varoufakis once again pointing fingers ahead of their June payment deadline with the IMF.

The euro didn’t react much to these sentiments, as EUR/USD and EUR/JPY remained within tight ranges while EUR/GBP ended the day back up to its Asian session levels.

Let’s see if we’ll get more action from Asian session forex traders. New Zealand has just published its trade balance report, which showed a slightly lower trade surplus in April. This is probably why the Kiwi’s price action remains muted with NZD/USD lollygagging just above the .7300 handle.

We don’t have any other major news on tap, so keep an eye out for any volatility that might pop up from European traders going back to their desks. Also, watch out for any news that might affect risk-taking!

See also:

London Session Recap

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