U.S. Session Recap – May 16, 2014

  • Canadian Manufacturing Sales: 0.4% vs. -0.3% forecast, 1.5% previous
  • U.S. Empire State Survey: 19.01 vs. 6 forecast, 1.29 previous
  • U.S. headline CPI inline with forecast of 0.3%, above 0.2% previous; U.S. core CPI: 0.2% vs. 0.1% forecast, 0.2% previous
  • U.S. Initial Claims: 297K vs. 320K forecast, 321K previous
  • U.S. Philadelphia Fed Survey: 15.4 vs. 14 forecast, 16.6

The U.S. session saw a tidal wave of U.S. data, with the more anticipated data points, like CPI and Philly Fed survey, coming in better-than-expected.  But the reaction in the Greenback was bearish, influenced more by broad risk fears, lead by the U.S. equity market selloff, pushing pairs like USD/JPY and USD/CHF down during the morning session.

USD/JPY was down as much as -0.75% (testing the 101.30 area) from its European session levels before settling around the closely watched 101.50 level.  And USD/CHF came back to earth after popping higher on speculation the SNB may adjust its floor on the EUR/CHF; USD/CHF fell -0.86% from the session high around .8957 before stabilizing and closing the session around .8906. And thanks to USD weakness, the euro was able to bounce back from its European session selloff with EUR/USD bottoming out around 1.3650, closing nearly breakeven for the session at 1.3706.

For the upcoming Asia session, we’ve got Japanese industrial production and capacity utilization data at 5:30 am GMT.  These aren’t typically market movers, but with Japan printing surprisingly positive economic data as of late, we could see an atypical spike in volatility, especially if they come in below their previous reads.  Also pay attention to sentiment in Asia equity markets as we may see the U.S. risk off sentiment roll over into Asia trade.  Good luck and good trading!

See also:

London Session Recap

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