U.S. Session Recap – June 18, 2014

  • US headline CPI rises by 0.4% vs. 0.20% expected in May
  • US core CPI up by 0.3%, highest since August 2011
  • US housing starts shows 1.00M figure vs. 1.03M expected and 1.07M previous
  • US building permits clocks in at 0.99M vs. 1.05M expected and 1.06M previous
  • Traders await Yellen’s remarks on employment and inflation

Well, that was quick. Trading volatility flared in the early U.S. session trading as Uncle Sam released its inflation numbers. Forex price action promptly died down though, and the major currencies traded on tight ranges for the rest of the session.

At the beginning of the trading session market players weren’t too excited about the FOMC statement scheduled today at 6:00 pm GMT. That changed when the U.S. printed higher-than-expected CPI reports. Aside from more tapering, some analysts are now expecting the Fed to raise its inflation and employment forecasts.

Not surprisingly, the Greenback got a healthy boost at the CPI numbers’ release. EUR/USD slipped by 24 pips to 1.3543 before ranging just below the 1.3550 handle. GBP/USD also fell 27 pips to 1.6954 before the pound bulls, still waiting for a break above 1.7000, quickly stepped in and pushed for a breakeven session. USD/JPY was probably the most noticeable as it broke above 102.00 to 102.15 and settled above the psychological level for the rest of the session.

Will the Asian session traders extend the Greenback’s gains or will the major currency pairs stay in tight ranges until the FOMC statement?

If you’re planning on news trading today, then you should know that the BOJ is due to print its monetary policy meeting minutes in a bit. Then, at 12:00 am GMT to 12:30 am GMT, Australia’s CB and MI leading indices will be published. Watch your trades closely in case these reports affect risk sentiment today!

See also:

London Session Recap

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