Forex trading news and economic data headlines for August 5, 2015

  • Fed's Powell hasn't decided on Sep hike yet
  • Fed's Powell says there is more labour slack than jobs data suggests
  • July 2015 US ADP employment report 185k vs 215k exp
  • June 2015 US international trade balance -43.84bn vs -42.80bn exp
  • June 2015 Canada trade balance -0.48bn vs -2.80bn exp
  • US makes the most of the weak Canadian dollar
  • July 2015 US services PMI final 55.7 vs 55.2 exp
  • July 2015 US ISM non manufacturing PMI 60.3 vs 56.2 exp
  • Forex technical analysis; Dollar moves higher after better ISM services
  • ISM's Nieves says it's too early to say momentum is building
  • Get above 125.00 and dollar bulls will be popping the champagne corks
  • US EIA oil inventories -4.40 vs -1.63m exp
  • Crude oil trading lower
  • ECB Jazbec sees positive developments on inflation
  • Remember: Australia Employment report in the new trading day

The North American session had ADP and Non Manufacturing ISM data as the chief fundamental catalysts for the market's action during the NY session. The ADP employment change estimate came out weaker than expectations at 185K va 215K exp. The miss sent the dollar lower. Later non-manufacturing ISM was stronger with a higher employment component. That component came in at 59.6 which was the highest since August 2005 and helped negate the unreliable ADP release. The greenback reversed directions.

Despite the stronger US data the GBPUSD was higher on the day - although it did come off its highs set during the European session. Perhaps the market is preparing for some positive vibes from the BOE as they embark on their new transparent rate announcement procedure tomorrow. As is typical, the BOE will announce their interest rate decision. However, they will also release a statement along with the vote. This is a first for the Monetary policy committee and brings the central bank into the 21st century. Welcome. I hope you enjoy the modern transparency.

The EURUSD is also higher on the day. The pair did have its own up and down volatility during the NY session - mainly from the economic data. A late day rally over the last few hours tipped the day's change to the upside for the pair (up around 24 pips).

The USDJPY traded at the highest level since June 8th reaching 125.00 before running into some minor profit taking selling soon after the stronger than expected ISM data. Overall, the pair kept most of the gains for the day, but a move above (and staying above) the all important 125.00 level will still be eyed (and important for traders). .

The USDCHF extended to its highest level since April 13th. The high reached 0.9820. It is getting closer to the psychological parity level. The pair has not traded above parity since March 18th, 2015, but did live through a near Greece collapse (and the flows associated with those uncertain times). The EURCHF is also higher today and looks toward the 1.0700. The pair has not traded above 1.0700 since March 10th.

Oil was down (futures fell below $45 per barrel) but the USDCAD was little changed after falling sharply to the 100 hour MA on a better Canada trade report (-0.48B vs. -2.90B est.). That fall was reversed and helped by the better US data and lower oil prices.

AUDUSD ends the day lower by about 24 pips. The employment report for July will be released in the new day. NZDUSD also fell by about same -24 pips.

Australia unemployment, German Factory orders, BOE decision and statement (they also release the inflation report and Carney speaks), and prep positioning for the US employment report on Friday are the influencers for the new trading day.

Thank you for you continued support and good fortune with your trading.