- U.S. NAHB housing market index up from 59 to 65 vs. 60 forecast
- Australia’s CB leading index up from 0.3% to 0.4%
No data? No problem! The Greenback was able to regain a bit of ground against its rivals as traders are starting to prep for the FOMC statement later this week.
Profit-taking from earlier sessions? – The U.S. dollar wasn’t off to such a good start for the week as it slid during the Asian and London sessions but soon recovered during the New York session. There were no major reports on deck, and the only number printed was the NAHB housing market index which jumped from 59 to 65, outpacing the consensus at 60.
Another possible explanation for the dollar’s tossing and turning throughout the day is that traders are still divided on what the FOMC might say in their policy statement later this week. Risk-taking has also been subdued, with U.S. equity indices ending the day mostly unchanged.
Oil market jitters – Crude oil also moved back and forth during the day while traders tried to price in expectations for the OPEC gathering in Algiers. Earlier in the month, a few big dogs in the oil market mentioned that they’re open to the possibility of an output freeze, but it remains to be seen if they can walk the talk. WTI crude oil rose to $43.25 but returned these gains towards the end of the session to end nearly flat.
Major Market Movers:
USD – The U.S. dollar rebounded from its slide earlier in the day as some traders priced in the possibility of a hawkish Fed statement.
EUR/USD retreated from a high of 1.1198 to 1.1177, GBP/USD is down from 1.3091 to 1.3034, USD/JPY bounced from a low of 101.60 to 101.93, USD/CHF dipped to a low of .9794 but climbed to .9800, and USD/CAD is up from 1.3149 to 1.3212.
- 1:30 am GMT: RBA meeting minutes (Check out Forex Gump’s preview here!)
- 1:30 am GMT: Australia HPI q/q (3.1% expected, -0.2% previous)
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!