13 September, 2013
News flow was light during the European session, with the usual Friday low volume trading. Risk sentiment was to the upside but the U.S. dollar was the currency in focus today as investors position ahead of key U.S. economic data in the U.S. session.
There were some rumours swirling around that Larry Summer is likely to be appointed as the next Federal Reserve Chairman after Ben Bernanke leaves office in January. He is thought to be more hawkish than his rival candidate Janet Yellen, so he is preferred by market participants and his appointment would be more “dollar-friendly”.
Of course these reports have not been confirmed and the White House says is has not made its decision yet, and markets are merely speculating right now, giving an excuse for dollar to be supported for most of the session.
As early U.S. session traders came in, and U.S. retail sales data were released at 8:30am New York time, the dollar began to fall. Sales reported a less-than-forecast gain in August.
EURUSD was trading around $1.3280 during the European Session. The pair’s direction mainly depends on the U.S. data. Of course as soon as the data was released, the pair moved higher.
Sterling was more or less flat in the London session, despite strong U.S. construction output data. GBPUSD traded as high as 1.5817 then burst higher after the U.S. data to $1.5864 at time of writing.
USDJPY headed lower after reaching an early high of 99.94 yen, down towards 99.43 after dollar was hurt by the disappointing retail sales numbers.
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