The fundamental numbers came out mostly green during the London and New York sessions on Friday, that’s why there were massive ups and downs on the forex dance floor. Just when Mr. Euro got excited and completed 20 hours of up moves on better than expected German, French, Spanish and Italian data, Ms. USA started to rise and shine on better than expected prelim GDP reading, and therefor dragging the EUR/USD paid down again.
However, it’s not like the whole world was in green mode Friday. Much earlier during the Asian session, Japan’s CPI, household spending, and retail sales disappointed Mr. Japanese Yen. The sad thing is that the BoJ has been highlighting Japan’s healthy export industry, and letting domestic news remain in the background.
Friday’s reading for January ‘s economic data obviously suggest that the worst isn’t over for Japan.
We are expecting a bit more volatility in the US dollar this afternoon with FOMC discussions and UoM consumer sentiment, but they aren’t expected to be massive movers as traders are eager to close the shops down and head into the weekend.
Don’t forget to loosen up your stops and limits if you have open trades over the weekend, and I’ll see you next week!