U.S. Session Recap – June 25, 2014

  • Carney’s dovish remarks continue to weigh on GBP
  • US S&P house price index up by 10.8% vs. 11.5% uptick expected
  • US Richmond mfg index clocks in a reading of 3 vs. 7 last month
  • US CB consumer confidence registers at 85.2 vs. 83.5 expected and 82.2 previous
  • US new home sales up at 504K vs. 425K last month

Talk about intraday reversals! The dollar ended the U.S. forex trading session mixed against its major counterparts as traders priced in Uncle Sam’s reports and risk sentiment in the markets.

The dollar started the session on a strong note as the U.S. printed better-than-expected reports. The Conference Board’s consumer confidence report highlighted optimism over the economy as it hit 85.2 in June, the highest level since January 2008. New home sales also came in better-than-expected as the numbers caught up to the slow start in the spring selling season. Unfortunately, investors soon realized that these reports won’t have much impact on the Fed’s resolve to delay interest rate hikes.

EUR/USD fell by around 40 pips to the 1.3580 area in the first hours of the trading session before ending the session almost unchanged from its open price. Ditto for USD/JPY, which climbed to the 102.15 area before closing at 101.92. Meanwhile, GBP/USD registered a 25-pip dip to 1.6966 before capping the day at 1.6985.

Unlike the European currencies and the dollar’s fellow low-yielding counterparts, the comdolls weren’t able to recover from their intraday losses. AUD/USD fell by another 30 pips to .9474, USD/CAD shot up from 1.0730 to 1.0744, and NZD/USD slid by 32 pips to .8683.

Now on to a new forex trading day! The economic calendar is light with only Japan’s corporate services price index and Australia Deputy Governor Philip Lowe’s speech scheduled throughout the Asian trading session. These reports don’t usually have a big impact on the major currencies, so keep your eyes peeled for any news that might become market-movers!

See also:

London Session Recap

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