Today’s London session began with currency traders digesting recent moves made over the past 24hours. Most of the majors were pretty much contained in early trading, with the dollar firmly off its lows. Many were expecting a session of consolidation following the rate cut from the Federal Reserve and ahead of the employment numbers on Friday. Instead, Forex Traders saw dicey price action from a market that couldn’t seem to make up its mind.
After several attempts to move back to the day’s highs around the 1.4480s, and possibly all time highs made in New York, the bottom apparently fell out of EURUSD. Dollar buys finally won the ongoing tug of war for the pair at 1.4470, and sent it plunging 50+ pips lower in a quick move to the 1.4420s. GBPUSD couldn’t manage to make new highs either. After topping out at around 2.0810, the pair gave back 30+ pips and fell into the 2.0780s. The greenback also gained against the JPY. The pair caught a strong bid in the 115.40s and didn’t look back for the rest of the session, dealing all the way towards 115.80 and holding the level.
Ahead in the upcoming New York session, traders will focus on the new levels made over the past 24 hours in the Forex market. Will EURUSD make new all time highs yet again? Will GBPUSD, AUDUSD, and USDCAD continue to deal at multi decade levels? There is a lot of excitement to come to round up the trading week, including Non Farm Payrolls on Friday. We’ll likely have answers to these questions within the next 30 hours!
Upcoming Economic Data Releases (New York Session)
US:
- 0830 Personal Income; consensus .4%
- Initial Jobless Claims; consensus 330K
- ISM Manufacturing; consensus 51.5
