U.S. Session Recap – July 21, 2014

  • CA June CPI: 0.1% vs. 0.5% previous
  • CA core CPI: -0.1% vs. -0.2% expected and 0.5% previous
  • US UoM consumer sentiment 81.3 vs. 83.0 expected and 82.5 previous
  • UK Rightmove house price index: -0.8% vs. 0.1% previous
  • Japanese markets closed for Marine Day holiday

Thanks to a lack of market-moving reports, price action during the U.S. forex trading session mostly involved risk sentiment and end-of-week trading.

EUR/USD fell to the closely-watched 1.3500 handle at the start of the session but failed to sustain the support break. The pair, as well as other euro pairs, eventually closed near their session open prices. Meanwhile, rumors that BOE’s Mark Carney would give a dovish speech also sent GBP/USD to the 1.7050 area but a denial of the news eventually propped the pair to end the session back at the 1.7090 levels.

The Loonie remained steady despite Canada’s latest inflation numbers contradicting Poloz’ statements that inflation pressures in Canada are temporary. On a year-over-year basis, consumer prices in the Great White North were driven higher by food, shelter, and transportation costs. Annualized inflation accelerated by 2.4% from 2.3% in May, its fastest pace since February 2012.

On a monthly basis the headline inflation slowed from 0.5% to 0.1% thanks to consumers paying less for clothing, electricity, and cars. Core inflation readings also fell by 0.1% after a 0.5% uptick last month.

USD/CAD spiked to a high of 1.0763 and a low of 1.0728 in the hour of the release before closing at 1.0737. The same price action was seen in CAD/JPY, which reached a session high at 94.59 and a low at 94.47 in the same hour before closing at 94.40.

The Asian session traders don’t have a lot on their plate today with only New Zealand’s credit card spending report scheduled at 3:00 am GMT. The report doesn’t usually affect the Kiwi’s price action much so keep your eyes peeled for any news that could! With the Japanese markets out on a holiday, keep an eye on the Australian or Chinese markets for possible movement.

Good luck and good trading!

See also:

London Session Recap

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