U.S. Session Recap – Aug. 28, 2014

  • Reuters’ “ECB sources” don’t expect action from the central bank next week
  • USD weakens across the board
  • CAD strengthens on technical and M&A talks
  • AU private capital expenditure on tap

The dollar gave back most of its weekly gains against its forex counterparts, as some US session traders priced in some good news while others closed books near the end of the month.

The euro was under the spotlight after a Reuters report hinted that its “ECB sources” aren’t expecting any action from the central bank without a significant decline in inflation expectations. This is probably why EUR/USD inched 11 pips higher to 1.3195, EUR/GBP jumped by 15 pips to .7961, and EUR/JPY tipped to a high of 137.31 before closing at 137.08.

The Loonie also brought home the bacon despite the lack of economic reports from Canada. Word around the hood is that both Burger King and Tim Hortons boards have approved the merger, which could translate to 11.4 billion USD being converted to CAD. Not only that, but market players also point to USD/CAD’s rejection of the 1.1000 psychological handle as a catalyst for its move to the 1.0850 area. EUR/CAD also fell by 54 pips to 1.4323 while CAD/JPY jumped by 43 pips to 95.71.

We don’t have a lot of major comdoll data on tap over the next few hours save for Australia’s quarterly private expenditure numbers. The report is expected to print a 0.9% decline after falling by 4.2% in the previous quarter, but keep an eye out for surprises that could dictate the Aussie’s price action!

See also:

London Session Recap

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

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