Daily FX Trading Update: Profit-Taking on USD Pairs? – Mar 23, 2015

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Daily FX Trading Update: Profit-Taking on USD Pairs? - Mar 23, 2015

The US dollar was unable to shake off the downbeat vibes brought forth by the cautious FOMC statement, forcing the currency to end lower against most of its FX trading counteparts for the week. There have been no major reports released from the US economy on Friday but a couple of Fed officials gave testimonies. According to FOMC member Lockhart, interest rates might increase by September, a later schedule compared to initial market estimates of a June rate hike. For today, FOMC member Fischer is set to give a speech and possibly give his forecasts for policy changes.

The euro managed to hold on to some of its recent gains to the dollar but was still in a very weak spot to its other FX trading rivals. Medium-tier data from the euro zone was mixed, as the German PPI missed forecasts but the euro zone current account balance printed better than expected results. Euro zone consumer confidence and a speech by ECB Governor Draghi are lined up today, with upbeat results likely to support the shared currency.

FX Trading News

The pound was able to bounce back to the dollar but was still sold off against its other FX trading counterparts. Public sector net borrowing data in the UK was stronger than expected, which means that the country’s finances are faring better. For today, CBI industrial order expectations data is due and a drop from 10 to 9 is eyed.

The franc continued to advance to the dollar on Friday even though there were no reports released from Switzerland. The tone of the latest SNB statement indicated that the central bank isn’t likely to intervene or adjust monetary policy for a while. There are no reports lined up from the Swiss economy today.

The Japanese yen advanced to the dollar but gave up ground to its other FX trading rivals on Friday, although the minutes of the BOJ meeting didn’t contain much surprises. As usual, policymakers indicated confidence in the economy and its progress in moving towards economic goals. There are no reports lined up from Japan today.

The comdolls struck up a strong FX trading recovery on Friday, even though the Canadian economy printed bleak retail sales figures. Headline consumer spending fell by 1.7% while core retail sales saw a 1.8% decline. The CPI readings were much better though, as the headline figure showed a stronger than expected 0.9% gain while the core figure came in line with expectations of a 0.6% uptick. There are no reports due from these economies today.

To contact the reporter of the story: James Brennan at james@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.