U.S. Session Recap – July 24, 2014

  • BOE: 9-0 on no changes, Carney has no time frame for rate hikes
  • CA retail sales: 0.7% vs. 0.6% expected and 1.3% previous
  • CA core retail sales: 0.1% vs. 0.3% expected and 0.8% previous
  • RBNZ hikes rates to 3.50%, signals pause in tightening
  • NZ trade balance: 247M NZD surplus vs. 100M expected and 285M previous

Thanks to a lack of US reports, the Greenback wasn’t under the investors’ spotlight during the US forex trading session. Instead, volatility was seen among the yen and Loonie pairs.

Major pairs like EUR/USD, GBP/USD, USD/CHF, and even AUD/USD failed to sustain their volatility from the London trading session and finished the day within their tight ranges.

The same couldn’t be said of the yen crosses, which inched higher on the back of positive US equities trading and the resulting USD/JPY strength. The pair climbed by another 12 pips to the 101.50 area while AUD/JPY shot up by 16 pips to 96.00 and GBP/JPY rose 25 pips to 172.97.

The Loonie also received some lovin’ from the currency bulls on the back of slightly better-than-expected Canadian retail sales numbers. USD/CAD had dropped from its 1.0747 intraday high to close at 1.0730 while GBP/CAD also ended the session 36 pips lower than its session highs.

Today’s Asian session promises to be an eventful one for the comdolls. The RBNZ has already fired the first salvo by hiking its rates by another 25 bps to 3.50%. Unfortunately, RBNZ’s Wheeler has also signaled a pause in tightening, saying that a “period of assessment” is needed before they adjust their rates to more neutral levels. Not surprisingly, the Kiwi took a tumble across the board. Japan has also printed its trade balance numbers but has yet to inspire volatility among the yen pairs.

Last but definitely not the least is China’s HSBC manufacturing PMI report at 1:45 am GMT. Analysts expect a rise to 51.0 from last month’s 50.7 reading but keep your eyes peeled for any surprises!

See also:

London Session Recap

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