U.S. Session Recap – July 8, 2014

  • CA building permits up by 13.8% in May vs. 2.0% uptick expected and 2.20% previous
  • CA IVEY PMI down from 48.2 to 46.9 vs. 52.0 expected
  • CA business outlook survey shows waning optimism
  • NZ NZIER business confidence at 32 index figure vs. 52 previous

Profit-taking was the name of the game in yesterday’s U.S. forex trading session as traders inspired retracements on last week’s favorite trends.

For starters, the dollar’s plummet during the London session extended through the U.S. session on weakness in U.S. equities. Apparently, investors are expecting the Fed to hike its rates sooner after the NFP report had printed better-than-expected.

USD/JPY fell by another 8 pips to 101.85 after hitting resistance at 102.00. EUR/USD also inched 11 pips higher to 1.3607 despite a weak German industrial production report. Last but not the least, GBP/USD recovered from its 1.7109 intraday low and finished the day at 1.7133.

The Loonie wasn’t so lucky. Analysts had been expecting Canada’s IVEY PMI, a leading indicator of economic health, to show a 52.0 index figure after last month’s disappointment. Instead, the index fell further to a 46.9 reading.

The BOC’s business outlook survey also made investors cagey as it showed that optimism among business owners is waning, enough for them to hold back from more hiring. Yikes! This is probably why USD/CAD shot up by 34 pips to 1.0677 while CAD/JPY also slipped to 95.40.

We don’t have a lot of potential market movers scheduled during the Asian session but you might still want to pay attention to Australia’s NAB business confidence report out at 1:30 am GMT. This doesn’t usually affect the comdolls much but it could throw more coal to the fire for the Aussie bears this week if the report disappoints.

Good luck and good trading!

See also:

London Session Recap

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