Article Highlights

  • US retail sales: 1.2% as expected vs. 0.2% growth last month
  • US core retail sales: 1.0% vs. 0.8% expected, 0.1% previous
  • US initial jobless claims: 279K vs. 275K expected, 277K previous
  • US import price index: 1.3% vs. 0.8% expected, -0.2% previous
  • US business inventories: 0.4% vs. 0.2% expected, 0.1% previous
  • CA new house price index: 0.1% vs. 0.2% expected, 0.0% previous
  • CA capacity utilization rate: 82.7% vs. 83.1% expected, 83.5% previous
  • IMF pulls out of Greek debt deal talks
  • Japan revised industrial production, tertiary industry activity numbers on tap
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Ho-hum. Forex price action was a mixed bag of nuts as traders barely reacted to Uncle Sam’s retail sales report. What’s up with that?!

Yesterday’s U.S. headline retail sales report came in at 1.2%, up from 0.2% and is just around what market players had expected. Though the sharp increase in consumer spending supports a 2015 Fed rate hike, investors who had been expecting to be wowed were disappointed.

This is probably why the dollar showed mixed results against its major counterparts. EUR/USD hit an intraday low of 1.1183 before ending the day at 1.1271 while USD/JPY jumped to an intraday high of 124.12 before levelling off to its 123.41 closing price.

The Greenback also erased its retail sales gains against the pound and the franc with GBP/USD rising by 80 pips (+0.52%) to 1.5530 while USD/CHF got off its spike to .9407 and closed at .9331.

Even the comdolls gained a few pips on the dollar. AUD/USD, which was likely boosted by strong Australian employment numbers, climbed by 44 pips (+0.57%) to .7764 after dipping to a low of .7694 following the retail sales release. Ditto for NZD/USD, which recovered from its .6968 intraday low and closed at .7022 despite the forex bears still feeling no love for the Kiwi after the RBNZ rate cut.

Last but definitely not the least is the Loonie, which took a breather from its losses early in the day. If you recall, the comdoll had slipped a bit on lower oil prices, slight disappointments in Canadian data, and a bit of dollar rally.

USD/CAD ended the session 49 pips lower (-0.40%) at 1.2276, CAD/JPY inched 12 pips higher (+0.12%) to 100.52, and EUR/CAD slipped by 9 pips (-0.07%) to 1.3836.

Will we see more volatility today? Asian session forex traders aren’t likely to see any more action than U.S. session traders unless Japan’s revised industrial production report and tertiary industry activity reports at 4:30 am GMT show significant surprises.

We might not have potential big movers over the next couple of hours but that doesn’t mean that you shouldn’t scout your charts for potential trades. Watch the newswires for any news that might move the major currencies!

See also:

London Session Recap

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