- US core PCE price index (q/q): 1.9% vs. 1.8% expected and previous
- US final GDP (q/q): 3.9% vs. 3.7% expected and previous
- US flash services PMI: 55.6 vs. 55.5 expected, 56.1 previous
- US UoM final consumer sentiment: 87.2 vs. 86.5 expected, 85.7 previous
- Japan’s final leading indicators report on tap
Forex price action was mixed during the U.S. session, as a lack of major catalysts pushed the major currencies all over the charts.
The dollar was still the overall winner as traces of risk aversion lingered in the markets. Of course, it didn’t hurt that Uncle Sam’s quarterly PCE price index was revised higher along with Q2 2015 growth estimates.
Luckily for the higher-yielding currencies, a selloff in U.S. equities eventually took its toll on the Greenback and limited its intraday gains across the board. Both S&P 500 and NASDAQ started the day on a strong note after Janet Yellen expressed confidence that global growth concerns aren’t expected to affect the U.S. economy much but eventually got weighed down by weaknesses in tech stocks.
EUR/USD ended the session 25 pips higher (+0.22%) to 1.1188 while USD/JPY slipped by 45 pips (-0.37%) to 120.57. Meanwhile, USD/CHF inched 5 pips higher (+0.05%) to .9792 after hitting a session low of .9745 and GBP/USD dropped to an intraday low of 1.5138 before capping the day at 1.5194, 31 pips higher than its session open price.
Even the comdolls had trouble finding direction against the dollar. With no major newsmakers from China and commodity prices, AUD/USD traded on a tight range just above .7000 while USD/CAD was also stuck just below 1.3350. NZD/USD got tons of pips though, possibly on end-of-week positioning after a strong forecast on dairy payouts. The pair climbed by 40 pips (+0.63%) and ended the day at .6377.
Will we see more volatility today? Asian session forex traders don’t have a lot on their plates with only Japan’s final reading on its leading indicators out at 5:00 am GMT. This doesn’t mean that you shouldn’t pay attention to your charts though. In fact, you can use the lull in economic reports to spot potential trades for the week.
Good luck and good trading!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!