Article Highlights

  • US initial jobless claims: 270K vs. 272K expected, 267K previous
  • US Challenger job cuts: 125.4% vs. 42.7% previous
  • UK NIESR GDP estimate remains at 0.7% growth
  • AU home loans, BOJ monetary policy statement due today
Partner Center Find a Broker

Thanks to profit-taking and positioning ahead of today’s NFP report, forex traders lost some love for the Greenback. Read on to see how it happened!

The dollar started the U.S. trading session on a sour note with the Challenger job cuts report showing a whopping 125.4% annualized increase in planned job layoffs in July. That’s the highest figure in almost four years! The report doesn’t affect June’s NFP numbers, but it also doesn’t inspire confidence in the labor market. After all, this week’s ADP report had already missed market expectations.

Profit-taking might have also hurt the Greenback. With the NFP report only a couple of hours away and traders more unsure about this month’s numbers, it makes sense that they’re pulling out their long dollar bets.

This is probably why EUR/USD popped up by 35 pips (+0.32%) throughout the session while USD/JPY inched 15 pips lower (-0.12%) to 124.71 and USD/CHF slipped by 29 pips (-0.30%) to .9806.

The pound was also in focus as it steadied against its counterparts. If you recall, the currency dropped across the board after Mark Carney and his gang broke forex traders’ hawkish hearts by hinting that inflation is taking hits from a strong currency and falling commodity prices.

GBP/USD hung around its intraday low levels just above 1.5500 while GBP/JPY found support at 193.50. EUR/GBP wasn’t done climbing though, and posted a 9-pip gain (+0.13%) throughout the session.

The comdolls also gained a couple of pips on the dollar despite the not-so-impressive Australian jobs data released earlier in the day and the continued decline in oil prices.

AUD/USD inched by 12 pips (+0.16%) to .7364 while USD/CAD fell by a nice 61 pips (-0.46%) to 1.3108. NZD/USD stayed in a tight range though, and capped the day at the .6550 levels.

Will we see more volatility from today’s Asian session forex traders? Not likely. After all, NFP Fridays are notorious for showing tight volatility ahead of the monster report. That doesn’t stop today’s reports from being printed though.

At 1:30 am GMT we’re expecting Australia’s home loans report, which is estimated to have grown by 5.0% from last month’s 6.1% decline. Then, at 3:00 am GMT the Bank of Japan (BOJ) is set to release its monetary policy statement. Market players aren’t expecting any changes from the central bank, but keep an eye out for any hints of changes or biases down the road!

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!