Article Highlights

  • Russia cuts off Ukraine’s gas supply
  • Escalating Iraq conflict pushes Brent crude oil prices higher
  • IMF lowers US 2014 growth forecast from 2.8% to 2.0%
  • US NY manufacturing PMI clocks in at 19.3 vs. 15.0 expected
  • US NAHB housing market index prints at 49 vs. 47 expected and 45 previous
  • US industrial production up by 0.6% in May vs. 0.5% expected
  • CA foreign securities purchase up to 10.13 billion CAD in April vs. 4.27 billion CAD expected
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The Greenback received triple roundhouse kicks against its counterparts during the New York forex trading session even as the U.S. printed decent low tier economic reports.

The IMF’s decision to downgrade Uncle Sam’s 2014 growth forecasts might have dampened the bulls’ cause. It also didn’t help that IMF’s Christine Lagarde said that the U.S.’ ageing population could limit the economy’s growth in the future.

Last but definitely not the least, market players might be closing their positions ahead of the FOMC statement this week. With the jobless rate already at the Fed’s Q4 forecasts, Janet Yellen and her gang might lower their threshold and raise their inflation forecasts to avoid signaling tightening in the near future.

EUR/USD shot up by 35 pips to 1.3571 throughout the session while GBP/USD also enjoyed a nice 9-pip hike to 1.6980.

The comdolls also enjoyed nice session rallies with AUD/USD gaining 19 pips to .9402 while higher Brent crude oil prices fueled USD/CAD’s 39-pip fall to 1.0841. Only USD/JPY remained relatively unaffected around the 101.82 area thanks to the yen preserving its strength during the Asian trading session.

Up ahead we’ll see the RBA’s monetary policy meeting minutes. Analysts are expecting upbeat statements from the central bank after some hawkish remarks in its latest policy decision, so watch your Aussie pairs closely for any trade opportunities!

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