U.S. Session Recap – January 15, 2014

  • US headline retail sales 0.2% vs. 0.2% expected
  • US core retail sales 0.7% vs. 0.2% expected
  • US business inventories 0.4% vs. 0.4% expected
  • AU new motor vehicle sales 1.7% vs. 2.0% expected

The dollar was the previous session’s king of pips as traders expressed relief over Uncle Sam’s better-than-expected retail sales numbers. Retail spending went up by 2% in December and suggested strong growth for Q4 2014. As a result, EUR/USD slipped by 30 pips, USD/JPY is back above 104.00, and AUD/USD, USD/CAD, and NZD/USD also showed Greenback strength.

Pound traders had other things in mind as they used the positive report to fuel the optimism from the UK’s CPI report. Inflation in the UK is now closer to the BOE’s targets at 2.0%. As I mentioned in my previous update, this could mean less worries for the central bank and more purchasing power for the UK consumers.

Up ahead we have Japan’s 30-year bond auction at 12:45 pm GMT, followed by the preliminary machine tool orders data at 3:00 pm GMT. These reports don’t usually dictate the yen’s price action so you might want to keep an eye out for Nikkei’s performance as well as the comdolls’ price action if you’re thinking of trading during the Asian session.

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!

  • Vee727

    “…strong growth for Q4 2014”?
    Did you mean Q4 2013?