London Session Recap – January 13, 2014

  • Italian Industrial Production m/m: 0.3% vs. 0.7% previous
  • Coming up: BOC Business Outlook and Loan Surveys; U.S. Federal Budget report

No major economic data points or news events during the morning London session, which means we saw light volatility in most of the major currency pairs, and a continuation of some of the moves sparked from last Friday and the Monday Asia trading session.

The Aussie dollar seems to be the big winner of the day as it pushes higher against its counterparts, with big moves against the British pound (up almost 200 pips since the week open) and the Canadian dollar (up around 140 pips since Friday).  We’re also seeing broad weakness in the Greenback, which is a continuation of Friday’s sentiment after the weak NFP report; the U.S. dollar is down about 150 pips against the Japanese yen since the U.S. jobs report.

Today, no major economic data points, but we do have the Bank of Canada Business Outlook Survey and Loan Survey at 3:30pm GMT.  This is not widely followed, but its something to pay attention to for Loonie traders.  Also, we have the U.S. Federal Budget Balance report at 7:00pm GMT.  This is expected to show another improvement, possibly even a surplus, so look out for potential USD strength in the afternoon U.S. trading session if it does.  Also pay attention to risk sentiment from the U.S. equity markets as it may have influence in currencies.  If we see risk aversion, the U.S. dollar and Japanese yen may find support for the rest of the Monday session.

See also:

Asian Session Recap

U.S. Session Recap

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