U.S. Session Recap – March 19, 2014

  • CA manufacturing sales 1.5% vs. 0.6% expected
  • US building permits at 1.02M vs. 0.96M estimates
  • US housing starts at 0.91M vs. 0.91M expected
  • US CPI at 0.1% vs. 0.1% expected
  • BOC’s Poloz hints at rate cuts
  • Carney says rates unlikely to increase anytime soon
  • German Court recognizes legality of euro zone ESM
  • Putin-induced rally fizzles ahead of FOMC

It was a busy U.S. session for the major currencies as reports sent them all over the charts. As I mentioned in my London Session Recap, talks of Putin not being interested in the rest of Ukraine helped support risk trading. The rally lost its momentum though, as some analysts pointed out that Russia is still adding forces around Ukraine’s borders.

Reports from the U.S. didn’t factor much into the volatility with the building permits, housing starts, and CPI coming mostly in line with expectations. What moved the Greenback more was the drop in U.S. bond yields ahead of the FOMC statement, which weighed on USD/JPY and other yen pairs. USD/JPY dropped from 101.70 to the 101.25 area while EUR/JPY and GBP/JPY also touched new intraday lows.

The Loonie ended the day as the biggest loser in the bunch after Canada’s better-than-expected manufacturing sales data was eclipsed by BOC Governor Stephen Poloz hinting that the central bank could cut rates if inflation risks build up. BOE’s Mark Carney also joined the jawboning party when he said that rates are unlikely to increase anytime soon. Yikes!

We have a busy Asian session trading ahead of us with Australia’s MI leading index and Japan’s trade balance numbers scheduled for release. BOJ’s Kuroda is also due for a speech at around 6:00 am GMT. Word on the streets is that Australia’s leading index and Japan’s trade data came in worse-than-expected, so pay attention to how they will affect risk trading!

See also:

London Session Recap

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