Article Highlights

  • US durable goods orders: -2.0% vs. -2.3% expected, 1.9% previous
  • US core durable goods orders: 0.0% vs. 0.1% expected, 0.4% previous
  • US initial jobless claims: 267K vs. 272K expected, 264K previous
  • US new home sales: 0.55M vs. 0.52M expected and previous
  • Yellen still expects a rate hike in 2015
  • Japan’s inflation numbers on tap
Partner Center Find a Broker

Another mixed trading for forex market players, as risk sentiment, economic data, and commodity prices moved the major currencies around.

The dollar gained pips against low-yielding counterparts like the yen and franc, thanks in part to better-than-expected durable goods numbers. Business spending fell less-than-expected in August after clocking in a 1.9% growth in July.

It also didn’t hurt that Janet Yellen was hawkish in her speech. Not only did the Fed Chief say that she’s expecting a rate hike some time in 2015, but she also said that current global growth concerns don’t have a “significant” impact on the central bank’s rate hike plans and that inflation is expected to reach the Fed’s 2.0% target.

USD/JPY rose by 43 pips (+0.36%) to 120.01 while USD/CHF popped up by 38 pips (+0.39%) to .9759 after hitting a low of .9668.

The Greenback wasn’t as lucky against the comdolls. Interestingly, it was overall risk aversion that boosted gold prices higher and gave the high-yielding Aussie a boost. Even the Loonie got a lift when oil traders focused on the falling U.S. oil supply. Read up on gold-AUD and oil-CAD correlations if you haven’t read the School of Pipsology yet!

AUD/USD ended the session 64 pips higher (+0.92%) to .7027 while USD/CAD capped the day back at 1.3311 after hitting an intraday high of 1.3417. Even Kiwi got a boost, likely after New Zealand’s Fonterra raised its milk payout forecasts.

Last but not the least are the European currencies, which didn’t show much consistency across the board. EUR/USD popped up to an intraday high of 1.1296 before Janet Yellen’s speech pushed it back down to 1.1224 while GBP/USD finally stopped its bleeding for the first time in days. EUR/GBP reflected who between the two is the boss though, with its 29-pip decline (-0.39%) to .7361.

Will we see more volatility among the major currencies today? Japan is firing the first salvo with its release of the National and Tokyo’s CPI numbers. Market players are expecting a 0.1% decline in Japan’s annualized rates (from last month’s 0.2% growth) and a 0.2% slip in Tokyo’s consumer price growth (from last month’s 0.1% uptick). The BOJ is really concerned over Japan’s inflation, so keep an eye out for any significant hits or misses!

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!