U.S. Session Recap – July 23, 2014

  • US June CPI: 0.3% vs. 0.3% expected and 0.4% previous
  • US core CPI: 0.1% vs. 0.2% expected and 0.3% previous
  • US annualized CPI: 2.1% as expected
  • US annualized core CPI: 1.9% vs. 2.0% expected
  • US FHFA house prices: 0.4% vs. 0.2% expected and 0.1% previous
  • US Richmond Fed mfg index: 7 vs. 5 expected and 3 previous
  • US existing home sales: 5.04M vs. 4.99M expected and 4.91M previous

There was plenty of volatility during the U.S. forex trading session as investors priced in a breakdown of the euro and Uncle Sam’s weak inflation reports.

The euro continued to drop against its major counterparts despite the lack of headlines to pin the move to. EUR/USD dropped by another 18 pips to 1.3468 after hitting an 8-month low at 1.3459. Similar moves were seen in EUR/JPY and EUR/GBP with the former sliding by another 31 pips to 136.64 and the latter inching another 9 pips lower to .7894.

The Greenback also didn’t get much lovin’ from the currency bulls. For starters, geopolitical concerns have somewhat eased with the EU ministers failing to agree on further sanctions for Russia. It also didn’t help that Uncle Sam printed weaker inflation numbers and supported the Fed’s schedule to hold off from tightening in the near future.

USD/CHF might have benefited from EUR/USD’s decline with its 11-pip gain to .9022 but USD/JPY ended the session 10 pips below its open price at 101.45. Even the comdolls snuck a couple of pips from the dollar with AUD/USD closing with a 7-pip win at .9395 and USD/CAD falling by 14 pips to 1.0737.

Let’s see if the slight dollar weakness would extend to the Asian trading session. A couple of minutes earlier Australia’s quarterly inflation numbers were released and so far the bulls are loving it. Inflation in the Land Down Under rose by 0.5% in Q2 2014, which is in line with expectations. Not surprisingly, the Aussie is popping higher across the board. No other major report is scheduled for release so look for possible intraday corrections or extensions from today’s comdoll moves.

See also:

London Session Recap

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