U.S. Session Recap – February 14, 2014

  • U.S. Jan. retail sales missed estimates, Dec. figures revised lower
  • U.S. Initial Claims weaker at 339K vs. 330K forecast
  • U.S. business inventories shows 0.5% gain vs. 0.4% estimates
  • Canadian House Price Index in line with expectations at 0.1%
  • Italian Prime Minister Leta announces his resignation plans
  • S&P 500, NASDAQ, and DJIA all close higher

The dollar continued to slide against its counterparts since Greenback traders stuck to their biases until the end of the trading session. EUR/USD was a hair’s breadth away from 1.3700 while GBP/USD reached highs not seen since 2011. USD/JPY dropped to 101.70 but risk appetite in the equities markets soon pushed to the pair back to 102.00.

For now it seems that risk appetite is propping up the higher-yielding currencies. Investors are paying more attention to U.S. reports and their impact on the Fed’s taper schedule. Don’t be too complacent about buying the other currencies though. The euro zone is facing a resignation by Italian Prime Minister Enrico Letta, Australia’s jobs figures is as ugly as it was yesterday, and the BOE still isn’t raising rates anytime soon.

Let’s see if Asian session traders will extend the dollar’s losses. The only major report scheduled for the session is China’s inflation figures out at 1:30 am GMT. The data is expected to grow by 2.4% vs. last month’s 2.5% uptick but keep an eye out for any surprises!

See also:

London Session Recap

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