Article Highlights

  • US initial jobless claims: 281K vs. 283K expected, 267K previous
  • US wholesale inventories: 0.3% vs. 0.2% expected, 0.4% previous
  • CA new house price index: 0.2% vs. 0.1% expected, -0.1% previous
  • Chinese inflation and Australia’s home loans due today
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The dollar clobbered its counterparts during the U.S. forex trading session, as investors gain momentum in pricing in a Fed rate hike this year.

It also helped that Uncle Sam’s initial jobless claims printed at 281K, still lower than the closely-watched 300K level. The report supported claims that last week’s NFP reading won’t stop the Fed from possibly raising its rates by as early as June this year. And with no other major data to dominate the news wires, the dollar bulls gained momentum throughout the session.

USD/JPY broke the 120.00 handle and closed with a 0.55% session gain to 120.58 while GBP/USD slid by 18 pips (-0.12%) to 1.4839. Even USD/CHF shot up by 83 pips (+0.86%) to .9777!

The comdolls weren’t safe against the dollar bulls either, despite the comdoll strength we saw in the earlier trading sessions. AUD/USD lost 41 pips (-.53%) to .7693 while USD/CAD rose by 64 pips (+0.51%) to 1.2579 and NZD/USD inched 36 pips lower (-0.47%) to .7566.

Another headline-maker was the euro, which was weighed down by both Greece getting a deadline to submit new reforms before it can get more bailout money and the region’s falling government bond yields.

EUR/USD slid down by 107 pips (-0.99%) to 1.0659 while EUR/JPY fell by 59 pips (-0.46%) to 128.52 and EUR/GBP inched 13 pips lower (-0.18%) to .7244.

Let’s see if the higher-yielding currencies get some of their pips back today. A couple of minutes ago Australia has released its home loans data (1.2% vs. 3.0% expected and -3.5% previous) while China has also printed its annualized inflation numbers (1.4% vs. 1.3% expected and 1.4% previous).

The reports haven’t affected the Asian currencies much, but watch them closely in case the buyers and sellers come alive over the next couple of hours!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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