Forex news for US trading, May 29, 2015

It was week end and month and the price action in most of the pairs reflected markets that lacked liquidity.

Economic data in the US was mixed and did little to ruffle traders feathers. GDP was better than expectations, regional PMI data was disappointing but Michigan consumer sentiment ended up better than expectations. G7 comments were not a surprise. Greece pushed the can further down the road with debt payments TBD next week.

The EURUSD rose for the third consecutive day, and in the process nearly made back to the high reached in the first hours of trading on Monday (the high on Monday was 1.1008. The high today reached 1.1005). That is the good news for the buyers. The 196 pip trading range for the week was the 3rd lowest for the year. Just to put things into perspective, the average range per day over the last 22 trading days is around 140 pips. So volatility is coming off. If the unofficial early summer season starts on Memorial Day, the summer doldrums have already started.

The GBPUSD rebound in the NY session in choppy trading conditions. The fall has now erased the election gains. For the month the pair was little changed.

The USDJPY was another currency pair which meandered in trading today. The pair did move higher on the day and with that closed at the highest level since December 2002. The high price from yesterday was not approached at 124.45 (high price was 124.17).

The USDCAD did a near complete lap of its trading range. The CAD was hit hard after GDP data came out worse than expected at -0.6% for 1Q vs +0.3% estimate. However, oil prices shot higher (up 4.42% on the day) and that reversed the CAD fortunes. Technicallly, the price this week moved above the 100 day MA on Tuesday and still managed to close above the key MA today (at 1.2383), but the rejection of the highs both yesterday and today show sellers.

The NZDUSD was pressured this week as speculation of rate cuts started to increase. Today, the pair fell to the lowest level since October 2010.

The AUDUSD - which was hurt by dismal 1Q Capital Expenditure numbers yesterday traded in a narrow trading range today.

Next week, the US employment report will be the focus. The estimate (released on Friday at 8:30 AM ET) will be for 225K vs 223K last month. Have a great weekend.