Article Highlights

  • US CPI: 0.4% vs. 0.5% expected, 0.1% previous
  • US core CPI: 0.1% vs. 0.2% expected, 0.3% previous
  • US initial jobless claims: 267K vs. 277K expected, 279K previous
  • US current account: -113B USD vs. -116B USD expected, -103B USD previous
  • US Philly Fed manufacturing index: 15.2 vs. 8.0 expected, 6.7 previous
  • US leading indicators: 0.7% vs. 0.4% expected, 0.7% previous
  • BOJ monetary policy statement on tap
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Down but not out! Forex bulls saw some action during the U.S. session, as slightly better-than-expected U.S. reports encouraged demand for the Greenback.

The dollar gained a few pips on its major counterparts after weakening in the earlier trading sessions following a less-hawkish-than-expected FOMC statement. And with no other major economies printing economic reports, Uncle Sam’s reports were put under the spotlight.

In case you haven’t read the headlines above, you should know that headline consumer prices rose at its highest in two years, thanks to higher oil prices. And though both headline and core readings disappointed market expectations, the better-than-expected readings in the initial jobless claims and Philly Fed manufacturing index reports were enough to keep the dollar bulls motivated throughout the session.

EUR/USD ended the forex trading session 28 pips lower (-0.25%) than its open price after hitting a high of 1.1436 while USD/JPY found a bottom at 122.48 and closed with a 23-pip gain (+0.19%) to 122.90.

Even GBP/USD, which hasn’t shown any significant retracement from its uptrend in days, gave up 26 pips (-0.16%) and closed at 1.5887. Meanwhile, USD/CHF capped the session with a 40-pip (+0.44%) gain to .9210 after hitting an intraday low near the .9150 area.

The comdolls bears were also in on some Greenback buying. Though both gold and oil prices ticked higher, the Aussie, Kiwi, and Loonie still lost pips against the dollar. AUD/USD closed with a 35-pip loss (-0.45%) to .7801, NZD/USD declined by 27 pips (-0.39%) to .6935, and USD/CAD popped up by 76 pips (+0.63%) to 1.2229.

See also:

London Session Recap

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