New York Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 22 08 21:41 GMT |

The buck was bid in a big way in NY trading, rising more than 100 pips on average against the majors. Driving the increase was another plunge in oil prices and a strong rally in US financial stocks. Oil fell more than $3 to $127.95/bbl in the session as speculation that Tropical Storm Dolly will miss major oil facilities in the Gulf of Mexico intensified. Stocks for their part, rose more than 1% in broad terms on a more than 6% rally in financials stocks as a note by a top bank analyst said that bank losses haven't spread as “much as feared.” Financials are up 28% since hitting the low last week, to boot. EUR/USD slipped from an open near 1.5920 to close down more than 130 pips around the 1.5785 mark. Adding to the already strong headwind from lower oil prices on the pair, Philadelphia Fed President Plosser was on the tapes with some major hawkish comments. Plosser did not mince words in calling for rate hikes “sooner rather than later.” USD/JPY was bid in the session as the carry trade was back in vogue on the smart gains in US stocks and the increase in yields. The 2-year surged 14 bps in the session to close near 2.72%, the highest since late June. USD/JPY opened near 106.24 and closed near the 107.32 level. This was the first close above the 200-day moving average for the pair all year and suggests more upside is in the offing. Upcoming Economic Data Releases (Asia Session) Prior Estimate 7/23 1:00 GMT AU DEWR Skilled Vacancies MoM JUL -0.10% - - 7/23 1:30 GMT AU Consumer Prices (QoQ) 2Q 1.30% 1.30% 7/23 1:30 GMT AU Consumer Prices (YoY) 2Q 4.20% 4.30% 7/23 1:30 GMT AU RBA Trimmed Mean (QoQ) 2Q 1.20% 1.10% 7/23 1:30 GMT AU RBA Trimmed Mean (YoY) 2Q 4.10% 4.20% 7/23 1:30 GMT AU RBA Weighted Median (QoQ) 2Q 1.30% 1.10% 7/23 1:30 GMT AU RBA Weighted Median (YoY) 2Q 4.40% 4.40% 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.