Article Highlights

  • US and Canadian markets out on Labor Day holiday
  • NZ manufacturing sales (q/q): 0.4% vs. -2.6% previous
  • Japan’s current account and final GDP released
  • AU NAB business confidence, China’s trade balance on tap
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Forex volatility was tight during the U.S. session, thanks to a lack of catalysts and both U.S. and Canadian markets taking a break for Labor Day.

Probably the most notable move of the hour was the pound’s recovery. Remember that the currency had fallen against most of its counterparts for NINE straight days. Since there weren’t any direct catalysts for the move, it’s possible that a retracement was simply due.

GBP/USD popped up by another 22 pips (+0.14%) to 1.5277 after rising sharply during the European session while GBP/JPY also saw a 14-pip increase (+0.08%) to 182.30 and GBP/AUD rose by 73 pips (+0.33%) to 2.2059.

The euro also inched higher, probably due to Germany’s strong industrial production numbers still affecting its moves. EUR/USD inched 19 pips (+0.17%) higher to 1.1164 while EUR/JPY gained 13 pips (+0.10%) to 133.22 and EUR/CHF popped up by 21 pips (+0.19%) to 1.0890.

The rest of the comdolls showed tight trading, if not slightly weaker price action. AUD/USD stayed below .6950, which isn’t surprising since gold prices weakened a bit more during the session. Ditto for USD/CAD, which went up by 18 pips (+0.14%) to 1.3307 possibly on oil prices having another weak day in the markets. Meanwhile, NZD/USD fell to an intraday low of 0.6245 before capping the day at .6262.

Let’s see if we can get more action in the forex charts today! A while ago Japan has printed its current account, bank lending, and final quarterly GDP numbers.

The takeaway from these releases is the GDP report, which showed the economy shrinking by 0.3% in Q2 2015. While it’s still better than the projected 0.4% decline, the data still reflects the lack of impact the BOJ’s stimulus efforts are making. Will we hear more QE hints from the central bank soon?

At around 1:30 am GMT we’ll see Australia’s NAB business confidence and conditions reports, followed by China’s trade balance data some time during the Asian session. Keep your eyes peeled for any surprises that might dictate risk sentiment for the rest of the session (or week, for that matter).

Good luck and good trading!

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!