U.S. Session Recap – April 25, 2014

  • Draghi: worsening inflation outlook may lead to asset buying
  • US durable goods orders up by 2.6% in March vs. 2.0% uptick expected
  • US initial jobless claims rises to 329K vs. 305K previous
  • Russia to start military drills in response to Ukraine killing militants along border

It was a topsy-turvy session for the major forex pairs as they showed volatility in reaction to several factors.

The Greenback popped up across the board when the durable goods orders data was released. It rose by 2.6% in the month of March, the largest increase since November. The core numbers, which excludes volatile transportation orders, also jumped by 2.0% and left analyst estimates of a 0.6% uptick in the dust. Meanwhile, unemployment claims rose by 24,000 but was mostly shrugged off due to possible Easter holiday impact.

EUR/USD and GBP/USD dropped by around 30 pips in the first hour of the U.S. trading session while USD/JPY and USD/CHF popped up by around 20-25 pips.

Unfortunately for the dollar bulls, the good vibes only lasted for an hour. The Greenback wiped out most of its gains an hour after the report was released before the major currency pairs went back to trading in their tight ranges.

It also didn’t help that mixed news reports are discouraging clear trends among major currencies. While traders are pricing in better-than-expected German IfO and U.S. reports and the RBNZ’s rate hike, they’re also keeping an eye on the escalating tensions in Ukraine and Draghi’s warnings of potential asset buying.

Let’s see if we can get clear intraday trends today. Japan’s inflation numbers have just been printed and so far it’s not looking good for the yen. No other news report is scheduled for release ahead of the U.K.’s retail sales in a few hours, so y’all better keep close tabs on China, Japan, Ukraine, and any other countries that might affect risk sentiment!

See also:

London Session Recap

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