U.S. Session Recap – July 9, 2014

  • US JOLTS job openings up at 4.64M vs. 4.53M expected and 4.46M previous
  • UK NIESR GDP estimate clocks in at 0.9% vs. 0.7% previous
  • 10-year U.S. Treasury yields posts largest two-day drop since May
  • Fitch affirms New Zealand’s AA rating, upgrades outlook from stable to positive
  • Moody’s cuts outlook for Canada’s biggest banks from stable to negative

The dollar bulls were NOT on their A-game yesterday as the low-yielding currency crashed and burned against most of its major counterparts. Falling bond yields, frustration over the Fed’s tightening timeline, and a bit of risk aversion reigned supreme in yesterday’s U.S. forex trading session.

USD/JPY was the first to go with a 19-pip slide to 101.54, which might have caused the small declines in other yen crosses. EUR/USD also rejoiced from the overall USD weakness with its 17-pip ascent to 1.3612. Last but not the least, GBP/USD recovered from the impact of weak UK reports with its 14-pip jump to 1.7133.

The comdolls also participated in the dollar-selling party. Thanks to Australia’s strong business report and Fitch’s outlook upgrade on New Zealand, AUD/USD was able to sneak in 4 pips to .9402 while NZD/USD also inched 8 pips to .8788. Even USD/CAD, which should have reacted to grim outlook for Canada’s banks, popped 2 pips higher.

Will the Greenback’s bloodbath continue through the Asian session? Australia has already released a positive Westpac consumer confidence report but China is still set to print its inflation numbers at 1:30 am GMT. A disappointing rate could drag the comdolls lower, so make sure you stick around when it’s released!

See also:

London Session Recap

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