U.S. Session Recap – June 27, 2014

  • US initial jobless claims at 312K vs. 310K expected and 314K previous
  • US core PCE price index up by 0.2% vs. 0.2% expected and previous
  • US personal spending up by 0.2% vs. 0.4% expected and 0.0% previous
  • US personal income up by 0.4% as expected vs. 0.3% previous

Like the fans of the U.S. and German World Cup teams, the currencies were all over the charts during the U.S. forex trading session.

The Greenback scored small pips against its counterparts at the start of the session as the U.S. printed slightly better-than-expected reports. But whether these weren’t enough to sustain dollar rallies or traders simply took their end-of-quarter profits, the dollar soon ended the session unchanged or in the red against its major counterparts.

EUR/USD had fallen to an intraday low of 1.3576 before closing at 1.3609 while USD/JPY slipped to the 101.66 area before closing at 101.71. Even USD/CHF dipped to a high of .8957 before capping the day at .8937.

The pound continued to gain support on the back of Carney’s speech. Aside from not following up on his last dovish statements, he hinted that the BOE would act if house prices rose uncomfortably. Analysts chose to interpret “act” to mean “interest rate hikes.”

GBP/USD fell by 30 pips to 1.7011 at the release of Uncle Sam’s positive reports but it was easy for the bulls to push it back to 1.7028 by the end of the session while GBP/JPY also recovered from a session low of 172.62 to a 173.19.

While the European currencies were struggling with their intraday reversals, the comdoll bulls were chillin’ like villains with their gains. Dollar aversion and positive comdoll sentiment pushed AUD/USD 5 pips higher than its session open price while NZD/USD registered a 13-pip gain and USD/CAD fell by another 24 pips to 1.0693. Yowza!

We don’t have a lot on the Asian session plate today as Japan’s slew of slightly positive economic data have already been released. Word on the hood is that New Zealand’s trade surplus numbers are also providing support to the Kiwi at the moment. Will positive risk sentiment continue to dictate currency price action today?

Remember that it’s the end of the quarter, so watch your trades closely!

See also:

London Session Recap

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