U.S. Session Recap – July 10, 2014

  • CA housing starts: 198K vs. 190K expected and 197K previous
  • FOMC minutes reveals Fed could end QE in October
  • Draghi: ECB to keep policies steady for extended period

The FOMC minutes was the main headline during the U.S. session as the dollar bulls waited for signs of tightening from the central bank. Unfortunately, the Fed was in no mood to give exact dates. The best Yellen and her gang could do was to say that they’re likely to end their QE program altogether with a $15B reduction in October barring any changes to their outlook.

The lack of tightening signals disappointed the bulls, which led to USD/JPY dropping from its 101.87 session high to its 101.62 close. EUR/USD also snuck in a 37-pip gain to 1.3642 while GBP/USD recovered from its London and early US session losses and closed with a 44-pip gain to 1.7154. Yikes!

Even the comdolls were in on the bandwagon. AUD/USD broke its intraday range to end the session with a 17-pip gain to .9414 and NZD/USD jumped 24 pips to .8822. The Loonie, which should have reacted to a slightly weaker-than-expected Canadian housing starts report, still gained 5 pips to 1.0660.

Today’s a big day for the comdolls with Australia due to print its employment numbers at 1:30 am GMT, followed by China’s trade balance data some time in the Asian session. These reports usually have a big impact on the Asian markets and risk sentiment for the rest of the day so make sure you don’t miss them. Word on the hood is that Australia will print better numbers than last month while China is set to release a slightly higher trade surplus.

See also:

London Session Recap

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  • ForExchange

    Hi PipDiddy,

    please check what you have written about the Loonie as CAD Housing Report came out actually better than expected so it is logical that Loonie gained 5 pips!

    Thanks