U.S. Session Recap – July 25, 2014

  • US initial jobless claims: 284K vs. 307K expected and 303K previous
  • US flash manufacturing PMI: 56.3 vs. 57.5 expected and 57.3 previous
  • US new home sales: 406K vs. 475K expected and 442K previous
  • Japan’s national core CPI prints at 3.3% as expected

The Greenback was the king of pips during the US forex trading session as investors reacted to higher US Treasury yields and a better-than-expected initial jobless claims data.

Initial claimants dropped to 284,000 last week, which is not only lower than the 307,000 figure expected, but also marks a low not seen since 2006! In addition, US Treasury yields popped back above 2.5% after staying below the psychological level for days. Overall the two reports helped investors shrug off Uncle Sam’s weak manufacturing and new home sales reports.

EUR/USD was near its 1.3480 intraday highs before it closed at 1.3464, GBP/USD fell by another 26 pips to 1.6987, USD/JPY popped up 16 pips to 101.79, and USD/CHF climbed by another 9 pips to .9025.

The dollar also took pips from the comdoll bulls. There were no major reports printed from Canada so it was easy for USD/CAD to inch 18 pips higher to 1.0744. AUD/USD also slipped by 19 pips to .9421 while NZD/USD sustained a 14-pip slip to .8577.

The comdoll bulls don’t have much opportunity to recoup their losses during the Asian trading session. Japan’s inflation numbers have already been released and so far we’re not seeing impact on the yen crosses. Ditto for New Zealand’s ANZ business confidence report which has printed weaker-than-expected but hasn’t affected the Kiwi so far. There aren’t any other major reports scheduled over the next couple of hours so watch out for other possible catalysts that might affect price action!

See also:

London Session Recap

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