- UBS Consumption Indicator 1.44 vs. 1.80 previous
- German GFK Consumer Sentiment: 8.5 vs. 8.2 forecast
- U.K. GDP (2nd Est.) ticks lower y/y: 2.7% vs. 2.8% forecast
The forex market was mostly stagnant through the morning London session, but it wasn’t a total snoozer as we did see a couple currencies pick up in volatility.
The Aussie dollar was the bigger mover among the majors, possibly on China concerns, a falling Chinese Yuan, and China’s affects on commodity prices, which Australia is reliant upon. AUD/USD is down 33 pips (-0.36%) to .8984, EUR/AUD is up 46 pips (+0.31%) to 1.5774, and GBP/AUD is currently up 82 pips (+0.45%) to 1.8564.
Sterling also moved a bit after a slight tick lower on the 2nd read of GDP (y/y). After some downside pressure during the initial reaction, sterling is slightly up across the board against the majors as traders show it would take a really bad economic number to bring it down. GBP/USD is up 12 pips (+0.08%) to 1.6689, GBP/JPY is up 21 pips (+0.14%) to 170.71, and EUR/GBP is currently down 8 pips (-0.11%) to .8226.
Coming up for the rest of the Wednesday session, we’ve got more U.S. housing data for FX traders to chew on during the U.S. and Europe session overlap.
At 2:00 pm GMT, the New Home Sales report will be on tap, with a forecast of 400K vs. 414K previous. Last week’s existing home sales number came in below expectations, so it’s not unreasonable to think we’ll see the same from today’s housing data. Also, U.S. equities are trading near all-time highs, which means the broad risk sentiment there may influence currencies like the U.S. dollar and Japanese yen. Be prepared and stay frosty traders!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!