London Session Recap – February 13, 2014

  • German Inflation data inline with expectations. Monthly CPI (Final) at -0.6%
  • Swiss Producer & Import Prices m/m better-than-expected; -0.3% vs. -0.4% forecast
  • U.S. Initial Claims weaker at 339K vs. 330K forecast
  • Canadian House Price Index inline with expectations at 0.1%
  • U.S. headline Retail Sales weaker-than-expected at -0.4% vs. -0.1% previous

Price action picked up during this morning’s London session as we saw U.S. dollar weakness in the currency market.

The  Aussie continued to take a hit after printing weak employment data during the morning Asia session, but has since bounced higher since the London open on broad weakness in the Greenback.  It’s currently trading around .8965, -0.68% on the session, after hitting lows around .8927.

The Greenback is the story of the day as it took a hit all session against most of the majors, probably as traders anticipated a weak retail sales report, which we just saw released in the last hour. The headline came out at -0.4% and the core flat at 0.0% vs. the 0.1% expectation.  The extreme weather conditions was to blame and traders are now concerned that the economy may be slowing down much quicker than anticipated on this number and the weaker-than-expected initial claims number.

USD/JPY is down 67 pips (-0.65%) to 101.85, while GBP/USD is up 55 pips (+0.33%) to 1.6648, and EUR/USD is up 77 pips (+0.58%).

To close out the session, we’ve only got U.S. business inventories on tap at 10:00 am ET, with expectations of 0.4% read inline with the previous month’s number.  This mid-tier data point may have also been influenced by weather, so be on the lookout for another surprise vs. expectations and more U.S. dollar volatility.

See also:

Asian Session Recap

U.S. Session Recap

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