The NY session had a summertime feel to it as the price action was ''wanting'' overall. Earnings remained on the radar and the large miss from a major US investment house sent shares reeling early on. Better reports overall, however, helped stocks recover and trade in choppy fashion for the better part of the session. The S&P ultimately ended the day flat at 954. Risk aversion was more prevalent in the Treasury space as the 10-year yield jumped more than six basis points to 3.54%. Gold caught a modest bid and remains supported while above the 950 mark as well.
The US dollar was down marginally and the DXY index showed a -0.1% result for the day. EUR/USD recovered from an early session low at 1.4156 and closed at 1.4218 eventually. The immediate bias is higher while above 1.4200, but the sustainability of the rally hinges on whether stocks can maintain their seemingly suspect gains. Cable also rallied smartly in NY trading. The pair found a session bottom at 1.6355 before rocketing to just below the 1.6504 high as the close approached. UK retail sales are due overnight and we could be in for a sharp squeeze lower should they disappoint.
The data docket was light with only Canadian retail sales in the top-tier realm. Headline sales beat expectations by rising 1.2% in May – market was looking for 0.5%. This helped solidify the notion that the Canadian economy remains on better footing than most, if not all, of the large industrialized nations. This helped USD/CAD squeeze down to a 1.0951 session low before closing out NY trading just below the 1.10 mark. Downside remains in focus while below 1.1010 here and below the NY low sees to trendline support near 1.0880 next.
Upcoming Economic Data Releases (Asia Session) prior expected
- 7/22 23:50 GMT JN Merchnds Trade Balance Total JUN ¥299.8B ¥610.0B
- 7/22 23:50 GMT JN Adjusted Merchnds Trade Bal. JUN ¥222.4B ¥513.9B
- 7/22 23:50 GMT JN Merchnds Trade Exports YoY JUN -40.9 -35
- 7/22 23:50 GMT JN Merchnds Trade Imports YoY JUN -42.4 -42
