U.S. Session Forex Recap – Feb. 22, 2016

  • Canada’s headline CPI up by 0.2% vs. 0.0% consensus
  • Canadian core CPI up by 0.3% vs. 0.2% forecast
  • Canada’s headline retail sales slumped by 2.2% vs. -0.7% forecast
  • Canadian core retail sales down by 1.6% vs. -0.5% consensus
  • U.S. headline CPI stayed flat in Jan vs. -0.1% estimate
  • U.S. core CPI up 0.3% vs. 0.2% consensus
  • Iranian official: Oil exports successfully increased by 500,000 barrels per day

The Greenback seemed to shrug off upbeat U.S. inflation reports as major forex pairs moved to the beat of country-specific events and financial headlines. Here’s how it all turned out.

Major Events:

Mixed reports from Canada – Canada’s economic figures were as mixed as a bag of M&Ms, with CPI readings beating expectations and retail sales reports falling short.

Headline CPI rose 0.2% instead of staying flat in January while the core CPI printed a 0.3% increase versus the projected 0.2% uptick. However, headline retail sales slumped 2.2% in December, worse than the estimated 0.7% fall, and core retail sales slipped 1.6% versus the expected 0.5% decline.

Oil, oil, oil – For the most part of the week, oil-related headlines influenced comdoll action and overall market sentiment, and Friday was no exception.

That day, an Iranian official was quoted saying that the country has successfully delivered on its pledge to boost crude oil exports by 500,000 barrels per day since Western sanctions were lifted. Now that can’t be good for the ongoing attempts to fix the global supply glut and boost prices.

Brexit chatter, EU/UK deal made? – Before the closing bell tolled on Friday, pound forex pairs tried to squeeze in a few more moves when reports of an EU/UK draft agreement hit the airwaves. If you wanna find out what’s been going on these days, Forex Gump’s got it all covered in his Brexit update right here.

Major Currency Movers:

CAD – The Loonie tossed and turned on Friday, as it was pulled in both directions by mixed data and crude oil updates.

USD/CAD rallied to a high of 1.3847 on downbeat retail sales data but soon retreated to 1.3765, CAD/JPY pulled up to a high of 82.16 then tumbled to the 81.50 area, EUR/CAD edged all the way up to a high of 1.5389, and GBP/CAD retraced to the 1.9800 handle.

GBP – The British currency staged a very late rally against its forex peers when traders reacted to U.K. Prime Minister David Cameron’s tweets on a deal with the EU.

GBP/USD spiked from the 1.4250 levels to a high of 1.4372, GBP/JPY bounced off a low of 160.74 to a high of 161.65, EUR/GBP retreated near its week open price of .7750, and GBP/AUD popped up to a high of 2.0183.

See also:

Asian Session Recap

London Session Recap

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