U.S. Session Recap – April 17, 2014

  • US building permits at 0.99M vs. 1.01M expected
  • US housing starts prints at 0.95M vs. 0.97M estimates
  • US industrial production rises by 0.7% vs. 0.5% expectations
  • BOC still open to rate cuts but currently has neutral bias
  • Yellen: Fed committed to providing stimulus
  • Beige book report: consumer spending has increased on the back of improved weather conditions

The U.S. forex trading session saw volatility on the back of some major reports but the major currencies eventually showed mixed price action results. Building permits and housing starts in the U.S. missed their estimates but a positive industrial production report was enough to support U.S. equities, the Greenback, and some high-yielding currencies early in the session.

The major currencies started trading all over the charts around the London session close. Reports of the U.S. “actively” planning on more sanctions for Russia weighed a bit on the euro while the pound continued its intraday uptrend on the back of strong employment numbers.

The Greenback also started losing some of its gains when Fed President Janet Yellen said that the Fed is committed to giving stimulus until they meet their employment and inflation goals.

The comdolls got a bit of a boost from a rise in commodity prices and positive U.S. data. The Loonie was an exception though, as it was dragged down by BOC Governor Poloz suggesting that a rate cut is still on the table. Last but not the least, major yen pairs like USD/JPY, EUR/JPY, and AUD/JPY mostly remained on their tight intraday ranges.

Over the next couple of hours we’ll see how traders react to BOJ Kuroda’s speech as well as Australia’s NAB business confidence and new motor vehicle sales reports. Also keep an eye out for possible profit-taking ahead of tomorrow’s holidays.

Good luck and good trading!

See also:

London Session Recap

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