U.S. Session Recap – April 11, 2014

  • US initial jobless claims falls by 32K, the lowest since May 2007
  • CA house price index up by 0.2% vs. 0.1% uptick expected
  • US import prices up by 0.6% vs. 0.9% previous
  • US Fed budget balance shows 36.9 billion USD deficit vs. 193.5 billion USD previous

Score another one for the dollar bears! Since there was no market-moving data on the docket, investors were reluctant to commit to a direction. As a result, the Greenback continued to sell off against its counterparts.

EUR/USD broke above its London session highs and even popped to the 1.3900 area while GBP/USD found support at its Asian session resistance levels. USD/JPY also joined the bears’ party after it found resistance at the 102.00 handle.

Uncle Sam’s reports were from terrible. Americans filing for unemployment benefits fell by 32,000 to a seven-year low of 300,000. Even the Fed’s March budget balance posted its lowest deficit in 14 years as an improvement in the labor market boosted tax receipts and government spending declined from a year earlier.

Unfortunately, investors had their eyes on the equities markets, which saw NASDAQ at its worst day since November 2011 while the S&P 500 also printed losses. The risk aversion in the equities markets and a lack of catalyst in the forex scene cost the dollar pips.

Let’s see if we’ll get more action from the Asian session traders today. Aside from New Zealand’s food price index and the BOJ’s meeting minutes already printed out, we’ll also see China’s inflation numbers at 1:30 am GMT. The report is expected to show an annualized rate of 2.4% from last month’s 2.0% uptick but keep an eye out in case we see surprises.

See also:

London Session Recap

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