Forex trading news and economic data headlines 31 July 2015

  • May 2015 Canada GDP -0.2% vs 0.0% exp m/m
  • Q2 2015 US employment costs 0.2% vs 0.6% exp q/q
  • July 2015 Chicago PMI 54.7 vs 50.5 exp
  • July 2015 Michigan consumer sentiment final 93.1 vs 94.0 exp
  • Michigan's Curtin says Fed should better communicate rate view
  • Baker Hughes total rig count 874 vs 876 prior
  • CFTC Commitment of traders report: Euro and pound traders take the clippers to shorts
  • Spain's Rajoy says they will create 1m new jobs in 2014-15
  • Fed's Bullard: GDP data backs the rate rise case
  • Greek markets will reopen with restrictions

  • The Fed trade is the biggest squeeze

  • There's some huge economic events next week that will have a big say in the central bank rate race

  • Treasuries find a late bid into the close

Bing Crosby singing "Busy Doing Nothing" sprang to mind as we rolled into the 12.30gmt data. To be honest my main focus was on the Canadian GDP number ahead of the US quarterly wage and costs numbers. It's not often a big market mover but today it blew the socks off of everyone. The slowest wage numbers since records began in 1982 immediately sunk dollar yen 40 odd pips to just under 124.00. No big surprise until it headed lower to 123.52. The real shock was the near instant 100 pip jump in the euro and pound

EURUSD rocketed to 1.1080 resistance, walked around in a circle for a bit, then made a grab for 1.11. It managed that to the tune of 1.1114 and then did its best to stay up there. Alas that wasn't to be and slowly through the rest of the session we tumbled down the stairs. A final hurrah came near the US close and a test of pre-data support at 1.0960 held. We finish at 1.0980

GBPUSD tested the 1.5675/80 level on the wages data and held. Thereafter a quick drop to 1.5595 was followed by a bounce to 1.5650. There wasn't much to for pound traders to do after that and we slid down to 1.5610 where we more or less end the day

USDJPY picked itself up from the lows but strong buying in US treasuries kept the lid on a complete move back to where it fell from and new interest at 124.00 has kept the price below

USDCAD went all sorts of ways on the Canadian GDP data, US data and a late drop in oil. We've seen a low of 1.2941 turn into another test of 1.3100, which came 6 pips short. A close up above the 1.3060/80 area could be just what CAD shorts are looking for

We've an action packed week next week and with the magnifying glasses out on US data we're in for more of the same volatility. Have yourselves a great weekend and rest those trading fingers as it's going to be a stormer

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