U.S. Session Recap – June 23, 2014

  • CA headline CPI up by 0.5% in May vs. 0.3% expected and 0.3% previous
  • CA core CPI also up by 0.5% vs. 0.3% expected and 0.2% previous
  • CA headline retail sales jumps by 1.1% vs. 0.6% uptick expected
  • CA core retail sales up by 0.7% vs. 0.4% expected

The Canadian dollar dominated the last trading session of the week last week as Canada printed better-than-expected reports. Strong demand for new cars pushed overall consumer purchases up by 1.1% in May, almost double the analyst expectations of a 0.6% rise and the strongest monthly growth since October 2011.

Canada’s inflation rate was also a surprise. The 0.5% jump in May’s consumer prices pushed the annualized rate to 2.3%, a two-year high for the indicator. Since the BOC wasn’t expecting inflation to hit 2% until Q1 2015, the report attracted a lot of interest rate hike junkies.

USD/CAD clocked in a 64-pip loss from 1.0817 throughout the session while CAD/JPY also jumped by 60 pips to 94.94. Similar Loonie-bullish moves could also be seen in crosses such as AUD/CAD, EUR/CAD, and even GBP/CAD.

The pound also got the attention of some analysts. The U.K.’s better-than-expected public sector borrowing numbers helped cement the currency’s intraweek gains, enough for GBP/USD and GBP/JPY to close above the closely-watched 1.7000 and 173.00 handles. We don’t have a lot of major U.K. reports due this week, so market players will likely pay attention if the break in these levels would lead to more pound gains.

Now on to the next trading week! Today’s a big day for the comdolls with China’s HSBC manufacturing PMI on tap at 1:45 am GMT, followed by BOJ Governor Kuroda’s speech at 6:00 am GMT. Watch your comdoll trades closely in case these reports set the tone for today’s Asian session trading!

See also:

London Session Recap

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