U.S. Session Recap – May 14, 2014

  • U.S. Import Price Index: -0.4% vs. 0.3% forecast, 0.4% previous
  • U.S. Retail Sales: 0.1% vs. 04% forecast, 1.5% previous; Core retail sales at 0.0% vs. 0.6% forecast, 1.0% previous
  • U.S. Business Inventories inline with forecasts at 0.4%, below 0.5% previous

The Greenback took a brief step back as U.S. data disappointed early in the session, but buyers were ready and waiting.

The reaction to the weak retail sales and import price index numbers was a U.S. Dollar selloff that didn’t have the legs to run.  As the London session approached closing hours, dollar bulls stepped in to fade the weakness and push the Greenback higher against most of the majors: USD/JPY closed at 102.27, EUR/USD closed at 1.3700 and GBP/USD closed at 1.6824.

Just after the U.S. session close, New Zealand also reported weaker-than-expected retail sales data, in which the Kiwi was sold but quickly faded to reach pre-release levels.  RBNZ Governor Wheeler also gave a press conference in which we saw no new insights to policy as the RBNZ will continue to tighten, observe and make changes if they see fit.

And we just got a better-than-expected Japanese CGPI read; the reaction is bullish yen, but it’s still to early to tell to see how forex traders will price this in.

The economic calendar for the Asia session is empty at this time, so price action may be influenced by recent positive risk sentiment and what’s happening in the Asia equity markets.  Look for the New Zealand Dollar and Japanese Yen to be the main movers, but volatility may be muted until we get to the London session.

See also:

London Session Recap

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