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24 Jan 2015
US Session Recap: Greenback profits taken off table
FXStreet (Guatemala) - Since the ECB made the deaccession to launch its sovereign QE programme, and with the SNB recent chopping the EUR/CHF floor, investors are liking the US more and more.
The greenback is maintaining the top spot, despite profit taking, although it is losing the competitive edge when it comes to the currency wars, strengthening further vs the euro and subsequently across the board and analysts are now citing parity in 2016/17 - not good for US exporting business. Anyway, Stocks performed well as diversification of cash flows continues to favour the US assets. Stocks were posting scores on the board close to January's highs earlier on in the session. There were a handful of data events at the start of the shift, but thereafter, the session was down to traders to determine ebbs and flows of the currency tides for themselves.
EUR/USD took back some ground lost from down on the lows at 1.1114 and managed a close back on to the 1.12 handle, albeit down from the highs of the recovery drift at 1.1289 down to 1.1207.
GBP/USD is essentially following in the tracks of the EUR and this move from the ECB is dangerous for committed and stubborn Sterling bulls, as where the euro goes the pound will likely follow. Bears stamped on attempts through 1.5020 resistance drowning the pound back below the 1.50 handle to 1.4985, although finishing up on the day close to half a cent.
USD/JPY stuck to a tighter range on the session of a choppy week, and settled into a sideways pattern around 117.80 resistance/support level post an early session recovery from 117.53.
USD/CAD was trading better bid with good retails sales figures and the Bank of Canada Consumer Price Index Core (MoM) (Dec) coming in higher than expected. We went form 1.2377 to 1.2438 in the session.
EUR/CHF was a choppy affair recovering from 0.9791 to 99.11 before dropping back to 0.9843, spiking again to 99.10 and chopping its way down through a drift to 98.50 and recovering for a close at 0.9870.
USD/CHF was volatile with large swings, more so than EUR/CHF but with a load up on dips strategy with a low of 0.8707 for a high of 0.8811.
Key Events:
Bank of Canada Consumer Price Index Core (MoM) (Dec) bullish -0.3 vs -0.4 expected
Canadian Consumer Price Index (MoM) (Dec) bearish -0.7% vs -0.6% exp
Canadian Retail Sales (MoM) (Nov) bullish 0.4% vs -0.2% exp
US Markit Manufacturing PMI (Jan) bearish 53.7 vs 54.0 exp
US CB Leading Indicator (MoM) (Dec) bullish 0.5% vs 0.4% exp
Existing Home Sales Change (MoM) (Dec) neutral 2.4%
The greenback is maintaining the top spot, despite profit taking, although it is losing the competitive edge when it comes to the currency wars, strengthening further vs the euro and subsequently across the board and analysts are now citing parity in 2016/17 - not good for US exporting business. Anyway, Stocks performed well as diversification of cash flows continues to favour the US assets. Stocks were posting scores on the board close to January's highs earlier on in the session. There were a handful of data events at the start of the shift, but thereafter, the session was down to traders to determine ebbs and flows of the currency tides for themselves.
EUR/USD took back some ground lost from down on the lows at 1.1114 and managed a close back on to the 1.12 handle, albeit down from the highs of the recovery drift at 1.1289 down to 1.1207.
GBP/USD is essentially following in the tracks of the EUR and this move from the ECB is dangerous for committed and stubborn Sterling bulls, as where the euro goes the pound will likely follow. Bears stamped on attempts through 1.5020 resistance drowning the pound back below the 1.50 handle to 1.4985, although finishing up on the day close to half a cent.
USD/JPY stuck to a tighter range on the session of a choppy week, and settled into a sideways pattern around 117.80 resistance/support level post an early session recovery from 117.53.
USD/CAD was trading better bid with good retails sales figures and the Bank of Canada Consumer Price Index Core (MoM) (Dec) coming in higher than expected. We went form 1.2377 to 1.2438 in the session.
EUR/CHF was a choppy affair recovering from 0.9791 to 99.11 before dropping back to 0.9843, spiking again to 99.10 and chopping its way down through a drift to 98.50 and recovering for a close at 0.9870.
USD/CHF was volatile with large swings, more so than EUR/CHF but with a load up on dips strategy with a low of 0.8707 for a high of 0.8811.
Key Events:
Bank of Canada Consumer Price Index Core (MoM) (Dec) bullish -0.3 vs -0.4 expected
Canadian Consumer Price Index (MoM) (Dec) bearish -0.7% vs -0.6% exp
Canadian Retail Sales (MoM) (Nov) bullish 0.4% vs -0.2% exp
US Markit Manufacturing PMI (Jan) bearish 53.7 vs 54.0 exp
US CB Leading Indicator (MoM) (Dec) bullish 0.5% vs 0.4% exp
Existing Home Sales Change (MoM) (Dec) neutral 2.4%