- U.S. labor market conditions index down from 2.3 to 0.4
- Canadian building permits jump 11.3% vs. 5.6% forecast
- Iran to increase its share in the global oil market
- WTI crude oil back below $30/barrel
The U.S. dollar’s forex performance was as mixed as the reviews for Coldplay’s Super Bowl 50 halftime show, as it gave up ground to the yen and euro but advanced against the pound and comdolls.
Low liquidity, high volatility – Chinese traders were off enjoying the Lunar New Year holiday yesterday, leaving forex action extra sensitive to headlines. The U.S. dollar slumped upon seeing a drop in the U.S. labor market conditions index from 2.3 to 0.4, as this suggests that future employment conditions might not look as rosy as the latest NFP report indicated.
More oil chatter from Iran – Crude oil resumed its slump after Iran reportedly told a Russian envoy that it plans to increase its share in the global oil market. Now that’s something we’ve already heard before, as Iran has previously pledged to ramp up its oil production soon after the Western sanctions were lifted earlier this year, but this reminder pretty much erased some of the optimism surrounding speculations of an OPEC emergency meeting this month.
Major Currency Movers:
USD – The Greenback broke out of its consolidation to chalk up more losses to the euro and the yen while resuming its rallies against the comdolls and the British pound.
USD/JPY is now trading below the 116.50 long-term support area and testing 115.00, EUR/USD bounced off support at the 1.1115 area to chalk up almost a hundred pips in gains, GBP/USD dipped to a low of 1.4353, and AUD/USD is down to the .7050 minor psychological support.
JPY – Yen pairs went on a sharp dive towards the end of the London session and throughout the New York session.
EUR/JPY tumbled from the 131.00 levels to test support at 129.00, GBP/JPY went all the way down to a low of 166.02 after briefly pulling up to 170.60, and AUD/JPY crashed by more than a couple hundred pips to 81.60.
- 12:00 am GMT: Australia’s NAB business confidence index
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!