U.S. Session Recap – August 20, 2014

  • US July CPI prints at 0.1% as expected, lower than 0.3% last month
  • US core CPI up by 0.1% like last month but lower than 0.2% expectations
  • US housing starts jumps to 1.09 million in July, higher than 0.97 million expected and 0.95 million last month
  • SNB to maintain CHF cap until at least 2016

Geronimoooo!!! High-yielding currencies took a beating from the Greenback yesterday, as US forex trading session traders focused on a positive US housing data.

Home construction in the US surged by 16% on a monthly basis, which translates to an annual rate of 1.09 million in July and the strongest reading since November last year. The report signaled renewed strength in the housing market, which could boost the economy in the coming months.

Of course, it also helped the Greenback that data from other major economies printed worse-than-expected. EUR/USD dropped to an 8-month low and ended the session with another 28-pip loss to 1.3321 on the back of weak euro zone reports.

Meanwhile, GBP/USD was still stinging from a weak UK inflation reading, as it slipped by another 20 pips to 1.6619. USD/JPY also jumped by 23 pips to 102.90 while USD/CHF rose by 23 pips to .9090.

The rise in USD/JPY did favors for other yen crosses. EUR/JPY recovered from a session low of 136.82 to its 137.08 closing price while GBP/JPY also closed 30 pips higher than its intraday low at 171.01.

Major comdoll pairs weren’t as lucky. AUD/USD, USD/CAD, and NZD/USD all fell victim to dollar buying, with AUD/USD and NZD/USD both falling by 37 pips to .9304 and .8421 respectively and USD/CAD rocketing by 37 pips to 1.0943.

Watch out for more volatility among comdoll pairs today, as Japan prints its trade balance report and Australia releases its MI leading index numbers today. Also keep your eyes peeled for any tidbits that RBA Governor Stevens might say in his speech! Word on the hood is that he might try to talk down the Aussie today.

Good luck and good trading!

See also:

London Session Recap

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