U.S. Session Recap – August 25, 2014

  • CA retail sales: 1.1% vs. 0.3% expected and 0.9% previous
  • CA core retail sales: 1.5% vs. 0.3% expected and 0.3% previous
  • CA CPI : -0.2% vs. -0.1% expected and 0.1% previous
  • CA core CPI: -0.1% vs. 0.1% expected and -0.1% last month
  • CA CPI (annualized): 2.1% vs. 2.2% expected and 2.4% last month
  • Yellen hints that the Fed could raise rates sooner but is also concerned over economic slack
  • Draghi says the ECB is ready to adjust policy if inflation continues to drop

The dollar brought home the bacon for another day last Friday, as investors took Yellen’s Jackson Hole speech as green light to push the low-yielding currency higher.

It’s not that Yellen has anything new to say. While she mentioned that economic factors (such as employment and inflation) are moving in the direction of the Fed’s goals, she also said that there remains slack in the labor sector. Analysts believe that Yellen’s speech merely served as green light for dollar bulls who were waiting to price in Uncle Sam’s recent positive economic data.

EUR/USD fell by another 22 pips to 1.3243, USD/CHF jumped by 15 pips to .9137, and USD/JPY rose by 19 pips to 103.96 after reaching an intraday high at 104.20.

The Loonie also provided volatility after Canada printed some tier 1 reports. Retail sales in Canada rose to record levels in June, as Canadians bought wine and beer in the early rounds of World Cup and spent more on lawn and garden products after a delayed start of summer. Not only that, but May’s numbers were also revised higher from 0.7% to 0.9%.

It’s not all good vibes from Canada though. Inflation, likely the more closely watched data, cooled by 0.2% after rising by 0.1% last month thanks to lower gasoline prices. This is probably why USD/CAD had hit a high of 1.0980 before closing at 1.0945 while GBP/CAD jumped to 1.8205 before closing at 1.8140.

There aren’t any major reports scheduled during the Asian session, so we’ll likely see limited trading volatility. That doesn’t mean that you should leave your charts though! Watch out for Cyclopip’s Weekly Watch and Happy Pip’s Comdoll Trading Kit if you’re planning on marking important chart levels on comdoll and cross currency pairs!

See also:

London Session Recap

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