Article Highlights

  • US UoM consumer sentiment: 94.6 vs. 91.2 expected, 90.7 previous
  • US PPI: 0.5% vs. 0.4% expected, -0.4% previous
  • US core PPI: 0.1% as expected vs. -0.2% previous
  • S&P downgrades UK outlook from AAA to AAA-
  • Greece unwilling to accept pension and wage cuts
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With no major economic report on the docket, forex price action was dictated by risk sentiment and movements from other markets.

The dollar lost pips against most of its counterparts, as some dollar bulls squared their positions ahead of this week’s FOMC statement. It also didn’t help that traders were feeling the love for higher yielding currencies like the euro and the pound during the U.S. trading session.

USD/JPY found resistance at the 123.75 area and fell by 21 pips (-0.17%) throughout the session. Ditto for USD/CHF, which fell to an intraday low of .9243 before ending the session with a 43-pip decline (-0.46%) to .9293.

Even the comdolls snuck in a few pips on the dollar despite the slight decreases in gold and oil prices. There were no major catalysts for the comdolls but AUD/USD popped up by 65 pips (+0.84%) to .7773 while NZD/USD ended the session unchanged after falling by 41 pips (-0.59%) to .6943. USD/CAD also ended the session near its open price near the 1.2330 area.

European currencies seem to gain more attention from U.S. session forex traders. The euro was put under the spotlight when rumors got around that Greece had rejected any cuts to pension and wages. Euro traders mostly shrugged off the news though, probably because Greece also promised to submit a counterproposal. The plot thickens as the deadline approaches!

EUR/USD rocketed by 50 pips (+0.45%)to 1.1254 while EUR/JPY rose by 39 pips (+0.28%) to 138.87.

The pound also caught some attention thanks to Cable popping up by 74 pips (+0.48%) to 1.5560 and GBP/JPY rising by 61 pips (+0.32%) to 192.01 even though credit rating agency S&P had downgraded the U.K.’s economic outlook from AAA to AAA-.

Asian session forex traders don’t have anything on their docket today, so keep an eye out for possible extensions of last Friday’s moves. Also keep your eyes peeled for possible positioning ahead of this week’s major economic events *cough* FOMC statement *cough*.

Good luck and good trading this week!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!