Article Highlights

  • US S&P Case-Schiller house prices: 4.9% vs. 5.6% expected, 5.0% previous
  • US consumer confidence: 90.9 vs. 100.0 expected, 99.8 previous
  • US Markit services PMI: 55.2 vs. 55.1 expected, 54.8 previous
  • US Richmond manufacturing index: 13 vs. 6 expected and previous
  • CA raw materials price index: 0.0% vs. 1.0% growth expected
  • CA industrial product price index: 0.5% vs. 0.4% expected, 0.5% previous
  • Japan’s retail sales expected to fall by 0.9% in June vs. 1.7% uptick in May
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The dollar lost pips against its major forex counterparts, thanks to weak U.S. data and possible positioning ahead of the FOMC meetings.

Dollar bloodbath was the name of the game during the U.S. session, as traders priced in Uncle Sam’s lukewarm economic reports. For instance, S&P Case-Schiller house prices missed its 5.6% growth expectations with only a 4.9% uptick while consumer confidence dropped to 90.9, its lowest since September 2014.

Yesterday’s reports highlighted the uncertainty over the Fed’s rate hike schedule. Unless you’ve been living under a rock, you’d know that market players (and highly likely the Fed too) are torn whether we’ll see a rate hike in September or December. Nowadays any news that might threaten the U.S. economy’s growth could be seen as a reason to delay a September rate hike.

Risk appetite might have also taken its toll on the Greenback. The possibility of Greece opening its equities markets stirred the euro bulls while the pound was still riding on a retail sales report high.

The Greenback lost against its European counterparts and slid against its fellow low-yielders. EUR/USD popped up by 31 pips (+0.28%) to 1.1060 while GBP/USD inched another 39 pips higher (+0.25%) to 1.5614. USD/JPY also slid by 21 pips (+0.17%) to 123.56.

Even the comdolls jumped on the dollar-selling train. Thanks to overall risk appetite and improvements in commodity prices, AUD/USD zoomed up by 21 pips (+0.29%) to .7327 while NZD/USD popped up by 26 pips (+0.39%) to .6686. Heck, even USD/CAD which had been trading near its six-year highs, dropped by 87 pips (-0.67%) to 1.2927.

Up ahead for Asian session forex traders is Japan’s retail sales numbers. At 11:50 pm GMT Japan’s retail sales is expected to print a 0.9% decrease after a 1.7% growth in May. Meanwhile, annualized numbers are expected to show a 1.1% growth after a 3.0% uptick in May. Significant downside surprises could put a dent on yesterday’s risk appetite mood, so make sure you stick around for possible volatility around the report’s release!

See also:

London Session Recap

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