Article Highlights

  • US durable goods orders: -0.5% as expected, last month’s data revised from 4.0% to 4.7%
  • US core durable goods orders: 0.5% vs 0.3% expected, last month’s data revised from -0.2% to 0.3%
  • US FHFA house price index: 0.3% vs. 0.7% expected, 0.6% previous
  • US S&P house price index: 5.0% vs. 4.6% expected, 4.9% previous
  • US new home sales: 517K vs. 510K expected, 484K previous
  • US consumer confidence: 95.4 vs. 95.0 expected, 94.3 previous
  • US flash services PMI: 56.4 vs. 57.0 expected, 57.4 previous
  • AU MI leading index, BOJ monetary policy meeting minutes on tap
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Forex price action fired up as traders in the U.S. went back in the game with a vengeance and pushed the dollar higher across the board.

Investors had their eyes on the durable goods orders numbers, which mostly came in as expected. What caught their attention though, were the upward revisions to last month’s data.

Of course, it also didn’t hurt that new home sales, S&P house prices, and consumer confidence numbers all ticked higher and that traders who didn’t want to take positions ahead of the weekend had just priced in Yellen’s somewhat hawkish statements last Friday.

EUR/USD fell by another 60 pips (-0.55%) to a one-month low of 1.0874 while Cable also hit an intraday low of 1.5354 before settling in at 1.5382. Meanwhile, USD/CHF registered another 62-pip gain (+0.66%) to .9531 and USD/JPY shot up by another 54 pips (+0.44%) to 123.09 and finished the day 156 pips (1.28%) higher than its open price. Yowza!

Even the comdolls were no match for the dollar’s strength. The Aussie, Loonie, and Kiwi were hit with a one-two punch of dollar strength and weaker commodity prices.

With gold near its two-week low and oil prices dropping to a one-month low, it’s no surprise that AUD/USD slipped by 70 pips (-0.90%) to .7733 and USD/CAD rocketed by another 63 pips (+0.51%) to 1.2427. Heck, even NZD/USD plunged by 72 pips (-0.99%) to .7225!

Let’s see if Asian session forex traders are as excited for volatility as their U.S. counterparts. Australia has just printed its better-than-expected MI leading index numbers and so far Aussie traders haven’t shown any significant reaction. Ditto for the yen, which hasn’t shown significant reactions to the BOJ meeting minutes.

We won’t see other reports until the London session, so for now, watch out for other reports that might affect risk-taking.

Good luck!

See also:

London Session Recap

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