U.S. Session Recap – June 12, 2014

  • US Fed budget balance clicks in at 130 billion USD deficit vs. 130.5 billion USD deficit expected
  • RBNZ hikes rates by 25 bps, hints at more rate hikes

The lack of major forex reports didn’t keep the bulls and bears from playing in the field today as we saw decent price action across the board.

The euro retained the biggest loser crown as traders continue to price in the ECB’s recent policy decisions. EUR/USD closed 21 pips lower at 1.3528, EUR/GBP fell by another 15 pips to .8058, and EUR/JPY slipped by 8 pips to 138.03

The dollar also failed to get some lovin’ from the bulls as a retreat in U.S. bond yields and U.S. equities reduced the demand for U.S. assets. USD/JPY traded below 102.00 for most of the session while USD/CHF also found it hard to break above the .9000 psychological handle.

Perhaps the biggest gainer throughout the session was the Kiwi, which was supported by RBNZ rate hike speculations. NZD/USD was found support near its two-week highs even before the report’s release.

And looks like market players speculated right! Not only did the central bank hike rates by 25 basis points to 3.25%, but RBNZ Governor Graeme Wheeler also hinted that they aren’t done raising rates. Yowza!

Let’s see if the Kiwi’s rally will gain momentum during the Asian trading session. Take note that the U.K. also printed its RICS house price balance data, and Japan has also released its core machinery orders report. Not only that, but we also have Australian data to consider today.

The Land Down Under has just released a lower-than-previous MI inflation expectations data, which will probably be outstaged by its employment numbers due at 1:30 am GMT. Analysts are expecting weaker numbers from last month, but keep an eye out in case we see surprises!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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