U.S. Session Recap – August 14, 2014

  • US headline retail sales flat at 0.0% against 0.2% growth last month
  • US headline retail sales flat at 0.0% against 0.2% growth last month
  • US business inventories grows by 0.4% as expected but still lower than 0.5% growth last month
  • NZ retail sales prints higher-than-expected numbers for Q2 2014

What a day for dollar traders! The Greenback lost pips against its counterparts in the early US forex trading session, but soon recovered as currency bulls stepped in.

The dollar fell across the board when retail sales in the US came in slower than expected. Not only did headline retail sales come in flat for July, but core retail sales only grew by 0.1% instead of 0.4% as analysts had expected. Since consumer spending accounts for two-thirds of the US GDP, the weak readings inspired some firms to downgrade their growth forecasts.

EUR/USD shot up by 47 pips to 1.3412 on the hour of the release while USD/JPY fell by 18 pips to 102.27 and USD/CHF dropped by 36 pips to .9045. Currency bulls eventually stepped in though, and erased most of the early US session moves.

EUR/USD ended the session with only a 1-pip slip to 1.3364, USD/JPY closed with a 2-pip decline to 102.43, and USD/CHF closed with only a 6-pip dip to .9075. The only exception among the major currencies was GBP/USD, which fell by another 19 pips to 1.6690 on the back of weak UK jobs data and dovish speeches by BOE Governor Carney.

The Asian session looks promising with New Zealand’s better-than-expected quarterly GDP report already causing small gains for the Kiwi. Meanwhile, Australia’s MI inflation expectations, which came in slightly weaker than last month’s reading, isn’t doing the Aussie any favors. We don’t have any other major report on tap, so pay attention to how these reports affect the comdolls for the rest of the day.

Good luck and good trading!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!