U.S. Session Recap – August 11, 2014

  • CA net employment change: 0.2K vs. 20K expected and -9.4K previous
  • CA unemployment rate: 7.0% vs. 7.1% expected and previous
  • US non-farm productivity (q/q): 2.5% vs. 1.6% expected and -4.5% previous
  • US wholesale inventories: 0.3% vs. 0.7% expected and 0.3% previous
  • Risk aversion eases as Russia finishes military drills near Ukraine’s border

The dollar’s price action was as mixed as a bag of beans during the US forex trading session, as investors traded on risk appetite and US data.

Risk aversion had somewhat eased during late Friday trading after Russia announced that it had ended its military exercises near Ukraine’s border. EUR/USD popped to an intraday high of 1.3433 while EUR/GBP also rose by 27 pips to .7994 in the first three hours of the session at the news. Not surprisingly, the yen crosses also received mild boosts with EUR/JPY rising by 44 pips to 136.91 and AUD/JPY climbing by 14 pips to 94.71.

The improvement in risk appetite didn’t do the Greenback any favors, especially since Uncle Sam also printed a weaker-than-expected wholesale inventories data. This caused some firms to downgrade their US GDP forecasts, which weighed on the low-yielding dollar. USD/JPY fell to a session low of 101.84 before recovering to its 102.08 closing price.

The Loonie also provided market players their volatility fix. Canada’s latest employment numbers revealed that only a net of 200 workers had found jobs in July, a lot weaker than the expected 20,000 increase. Not only that, but unemployment rate had also slipped from 7.1% to 7.0% thanks to workers leaving the labor market.

USD/CAD jumped by 49 pips to 1.0972 while CAD/JPY plummeted to an intraday low of 92.76 before closing with a 28-pip loss to 93.04.

Will comdoll bulls and bears get their mojos back today? Only Japan is set to print economic reports during the Asian trading session. We’re expecting the BOJ’s monthly report at 12:00 am GMT, followed by the consumer confidence numbers at 5:00 am GMT. These reports don’t usually cause sustained impact on the yen, so keep your eyes peeled for possible intraday trades.

Good luck and good trading!

See also:

London Session Recap

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