U.S. Session Recap – March 28, 2014

  • U.S. Q3 2013 final GDP at 2.6% vs. 2.7% expected and 2.4% previous
  • U.S. core PCE stays at 1.3% as expected
  • U.S. initial jobless claims prints at 311K vs. 323K expected
  • U.S. pending home sales drops by 0.8% in February against 0.2% uptick expectations

Think positive news from Uncle Sam would boost the Greenback? Think again! The dollar actually WEAKENED against the pound and the comdolls while it steadied or gained a little against the euro, yen, and the franc.

Yesterday Uncle Sam’s GDP was revised higher and the initial jobless claims came in at its lowest levels since November. It didn’t stop the dollar bears from rushing though, probably because the U.S. pending home sales and the final GDP reading had still missed analysts’ estimates.

The Kiwi and the pound were the top dogs among the major currencies as Kiwi was supported by New Zealand’s better-than-expected trade data while good vibes from the U.K.’s strong retail sales kept the pound bulls alive throughout the session. The euro wasn’t so lucky with investors pricing in more actions from the ECB ahead of next week’s monetary policy decision.

Earlier today we saw a bunch of Japanese data that have yet to significantly affect the yen pairs. Japan’s inflation, retail sales, and unemployment numbers generally showed mixed results. But more on that later.

For now keep your eyes peeled for news on China and the rest of the Asian markets. Also keep in mind that Japan’s fiscal year ends at March 31 so we’ll likely see end-of-year flows among the yen crosses. Watch your trades closely, folks!

See also:

London Session Recap

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

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  • John

    Hey Pipnoculars, what can you tell us about the recent strengthening of the Loonie? CAD bulls have pushed CAD higher in all pairs, even against the mighty NZD and GBP. What’s the deal with that? HappyPip had some ideas and I wanted to hear what you think.

    • Pip Diddy

      Heya John,

      The Loonie could have strengthened on a number of factors but at the top of my head here are possible reasons for it:

      1. Positive US data. Optimism on Uncle Sam is usually good for the Canadian economy.

      2. Easing concerns in Ukraine. Risk aversion moved the comdolls significantly a few weeks back. Investors might be coming back to high-yielding currencies and CAD is one of them.

      3. Higher crude oil prices. Related to #2. Crude oil is sticking above $101 and it’s good news for the oil-related Canadian economy.

      4. Profit-taking and overall comdoll rally. USD/CAD hit a resistance just below 1.1300 and even popped up an evening-star-like pattern on the daily. Investors who traded Poloz’ jawboning and other comdoll bears could be profit-taking ahead of the NFP week and end of Q1 2014.

      Hope this helps!