Article Highlights

  • No economic report printed from the U.S. or Canada
  • Stocks, USD recovered a bit after a downward spike
  • North and South Korea end standoff
  • Fed’s Lockhart: Fed rate hike complicated by recent market moves
  • Gold down by $6 to $1,153.60 per troy ounce
  • Oil falls to its lowest levels since early 2009
  • Oil falls to its lowest levels since early 2009
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Forex market price action was relatively calm during the afternoon, though we did see a couple of heart rate-raising moves at the start of the U.S. session.

One of the biggest themes is the downward spike seen among major currency pairs at the start of the session. We don’t have to look far for the cause, as the whopping 1,000-point drop of the Dow at the start of the session was all over the newswires. Market players eventually retraced some of the losses though DJIA still ended the day down by 588 points, its lowest in 18 months.

The rest of the day was relatively calm for forex market players thanks to a lack of new economic reports from both the U.S. and Canada. Atlanta Fed President Lockhart got some attention though, when he hinted that the decline in oil prices and China’s equities market, as well as the dollar strength could delay a Fed rate hike. He now expects a rate hike “sometime this year” instead of his September rate hike call. Yipes!

EUR/USD hit a high of 1.1711 before closing with a 95-pip gain (+0.83%) to 1.1600 while USD/JPY fell by 124 pips (-1.04%) to 118.53 after spiking to an intraday low of 116.21. Other major pairs like GBP/USD and USD/CHF also showed recoveries from the spike with GBP/USD closing at 1.5778 from its 1.5803 intraday high while USD/CHF fell to .9259 before finishing at .9325.

The comdolls weren’t as lucky as the European and low-yielding currencies. This isn’t surprising since, aside from concerns over China’s economy, gold prices also fell by another $6 while oil prices reached its lowest levels since early 2009. Duhn duhn duhn.

AUD/USD capped the session 65 pips (-0.90%) lower than its open price while NZD/USD also slipped by 70 pips (-1.07%) to .6493. Surprisingly, USD/CAD only popped up by 11 pips (+0.08%) to 1.3262.

Let’s see if Asian session forex traders show any love for the comdolls. Australia is set to print its CB leading index report at 12:00 am GMT followed by China’s index numbers at 2:00 am GMT. The former clocked in a 0.2% growth last month while the latter showed a 1.0% uptick.

While these reports don’t usually cause sustained chart moves, significantly lower numbers could fuel risk aversion over the next couple of hours. Be sure you’re in touch with your news wires when these reports are released!

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!