U.S. Session Recap – March 26, 2014

  • U.S. S&P Case-Schiller home prices at up by 13.24% vs. 13.34% expected
  • U.S. CB consumer confidence at a 6-year high at 82.3 vs. 78.5 expected
  • U.S. new home sales prints at 440K vs. 445K estimates
  • Richmond manufacturing index prints at -7 vs. -6 previous
  • ECB members try to talk down the euro

Positive reports from the U.S. translated to a stronger dollar in early U.S. session trading but it soon turned in favor of the higher-yielding currencies. EUR/USD and GBP/USD both ended the day way above their intraday lows while the comdolls capped the day with gains against the Greenback.

The pound easily closed with gains after a not-so-bad report from the U.K. Although the latest inflation numbers aren’t inspiring a rate hike, it’s not calling the BOE members for more stimulus either. The bulls also had an easy time pushing the comdolls higher thanks to rumors that China will launch more stimulus in reaction to the latest weak reports.

Meanwhile, the euro was on shaky ground early in the session as ECB members like Visco, Liikanen, and even Super Mario Draghi himself hit the newswires and all hint at using non-standard measures (read negative deposit rates) to help boost the economy. Fortunately for the bulls, the common currency staged a recovery a few hours before the U.S. markets closed.

Only the RBA’s financial stability review at 12:30 am GMT and RBA Governor Glenn Stevens‘ speech at 6:00 am GMT are scheduled for release over the next couple of hours. This means that you should pay close attention to your AUD trades, the Nikkei, and any news on China in case something pops up and moves risk appetite.

Good luck and good trading!

See also:

London Session Recap

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