New York Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 22 08 01:05 GMT |

US stocks and the oil market set the tone for the buck for the better part of the NY session, with higher oil and lower equities nudging the greenback lower in what was a pretty range bound environment initially. The last hour of NY trading was quite eventful, however, as a plethora of weak earnings reports hit the tapes and led to some quick selling of the US dollar. The earnings highlights were a major credit card company that missed earnings by more than -30% and a huge tech company that reported better earnings but much worse than expected guidance for the next quarter. EUR/USD opened the session near 1.5875 and had trouble breaking decidedly above 1.5900 all session, but the poor earnings reports helped send the pair towards the 1.5925 mark at the close. A weak US stock market coupled with a 3-4 bps decline in US yields also weighed down the buck. USD/JPY, which has been paying very close attention to the goings on in stocks, ended the session near 106.45 after an open around 106.85. A good stock market open helped the pair get as high as 107.15, but the cross pared gains on a turn lower in stocks and then saw a swift pullback on the weak earnings reports as well. Loonie (USD/CAD) was taken lower as oil prices rallied about $2.50 on the day to a $131.30/bbl close. The rally in oil prices was on the back of the poor result of the Iran meeting over the weekend and on worries that Tropical Storm Dolly will morph into a full-blown hurricane. The storm is expected to hit the northern Gulf of Mexico, which accounts for about 25% of US oil production. Loonie dropped from an open near 1.0045 to the 1.0000 mark at the close. Upcoming Economic Data Releases (Asia Session) Prior Estimate 7/21 23:50 GMT JN All Industry Activity Index (MoM) MAY 0.80% 0.40% 7/22 5:00 GMT JN Supermarket Sales (YoY) JUN -1.10% - - Forex.com http://www.forex.com DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.