U.S. Session Recap – April 29, 2014

  • Russia pulls troops from Ukraine border
  • Corporate talks boost EUR and GBP
  • US pending home sales up by 3.4% in March vs. 0.5% downtick in February
  • Draghi sees no deflation scenario
  • Japanese markets are out on Showa Day

Tough luck for the currency bulls! As I mentioned in my London Session Recap, M&A talks and a reversal from Friday’s risk aversion moves boosted risk appetite during the London session. Unfortunately, the upbeat vibe didn’t last for the higher-yielding currencies.

The Greenback dominated the U.S. for a couple of reasons. First, rumors that Russia is pulling out its troops from the Ukraine border fueled U.S. yields and energized the U.S. equities markets (which are both USD positive). Not only that, but Uncle Sam had also printed a better-than-expected pending home sales report. Last but definitely not the least, intraday rallies of higher-yielding currencies had lost their momentum, which made it easy for the dollar bulls to attack.

By the end of the day major pairs like EUR/USD, GBP/USD, and USD/CHF were back to their Asian session levels while the rallies in yen pairs had encountered road blocks.

Will we see more action from the yen pairs today? Only New Zealand’s trade balance numbers are scheduled during the Asian session and the Japanese markets are out on celebration of Showa Day. This means we’ll likely see even less volatility than the usual but keep your eyes peeled for surprises that might influence currency price action!

See also:

London Session Recap

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