U.S. Session Recap – April 15, 2014

  • US retail sales grows by 1.1% in March vs. 0.9% uptick expected
  • US core retail sales up by 0.7% vs. 0.5% growth estimates
  • US business inventories increases by 0.4% vs. 0.5% expected
  • UK BRC retail sales monitor shows 1.7% decline against 1.0% slip last month

Think a positive report would boost the Greenback? Think again! Yesterday Uncle Sam printed better-than-expected consumer spending data, with both the headline figure clocking in its strongest reading since 2012.

Unfortunately for the dollar bulls, investors were also paying attention to the lukewarm performance of the U.S. Treasury yields. 10-year Treasury yields rose by as much as 3 basis points before it dropped back down to a 1.6-basis points gain. In addition, market players are worried that the improvement in data would encourage the Fed to keep tapering. This is a problem for many Fed officials who still support more stimulus. As a result, EUR/USD and USD/CHF traded in tight ranges, GBP/USD stayed above 1.6700, and USD/JPY erased most of its U.S. session gains by the end of the day.

Will the Asian session traders react differently to the U.S. reports? At 1:30 am GMT we’ll see the RBA meeting minutes, which is expected to have a positive impact on the Aussie. Analysts don’t expect any remarks about another interest rate cut and they also don’t expect the RBA to say that the Aussie is overvalued.

Watch your charts closely for any moves that might affect currencies across the board!

See also:

London Session Recap

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