New York Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 28 08 21:04 GMT |

Despite a rout in US stocks and higher oil prices, the buck had a mixed session against the majors. Not only mixed, but relatively boring as well with an average 25 pip open to close move. US stocks got hammered, falling -2% in broad terms as financial stocks led the decline with a -4.5% plunge -- the third consecutive daily decline. EUR/USD was a touch lower in the session, opening around the 1.5760 mark and closing near the 1.5740 level. Euro managed to hang on to most of its overnight gains and remained up about 30 pips for the day. French consumer confidence and producer prices due up in the London session should provide some price action for the pair. Sterling (GBP/USD) extended gains against the buck, opening near 1.9885 and closing around the 1.9940 mark. The UK sees mortgage approvals data tonight along with consumer credit and we expect disappointing results will take the pound markedly lower. We would still be sellers of Sterling into rallies and especially towards the 2.00 area. Given the weakness in the UK economy we do not believe there is a fundamental reason for pound strength at the moment. USD/JPY was sold off a touch on the weakness in US stocks and commensurate declines in US yields. The 2-year note slipped a whopping -14 bps in the session to 2.57%. USD/JPY opened near 107.62 and was sitting near 107.45 at the close. Meanwhile, USD/CAD rallied despite oil being up about $1.40 to $124.70/bbl. Perhaps it was good news that oil did not increase more given the pipeline attacks by Nigerian Militants. USD/CAD closed the session near 1.0230 after opening near 1.0195. Upcoming Economic Data Releases (Asia Session) Prior Estimate 7/28 22:45 GMT NZ Building Permits MoM JUN -42.30% - - 7/28 23:30 GMT JN Jobless Rate JUN 4.00% 4.00% 7/28 23:30 GMT JN Job-To-Applicant Ratio JUN 0.92 0.91 7/28 23:30 GMT JN Household Spending (YoY) JUN -3.20% -2.80% 7/28 23:50 GMT JN Large Retailers' Sales JUN -2.10% -3.40% 7/28 23:50 GMT JN Retail Trade MoM SA JUN -0.20% -0.60% 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.