London Session Recap – March 5, 2014

  • Mostly better-than-expected European data
  • European Composite PMI 53.3 vs. 52.7 forecast; Services PMI 52.6 vs. 51.7
  • European Retail Trade m/m: 1.6% vs. 0.8% forecast
  • European GDP (2nd Est.) y/y inline with forecasts at 0.5%
  • U.K. Services PMI 58.2 vs. 58.0 forecast

The morning London session was filled with good European data to keep forex traders on the ready to make moves.  Unfortunately for euro bulls, the positive data didn’t translate in euro gains for the shared currency.  The catalyst for lack of support for the euro isn’t clear, but it could be attributed to lingering Ukraine concerns and/or traders adjusting positions ahead of the ECB meeting tomorrow.

EUR/USD is down 27 pips (-0.43%) to 1.3714, EUR/JPY is down slightly by 5 pips (-0.04%) to 140.39, and EUR/GBP is down 18 pips (-0.22%) to .8220.

We also got a better-than-expected services PMI report from the U.K., helping Sterling tick higher against the majors on the session: GBP/USD is currently up 18 pips (+0.11%) to 1.6682 and GBP/JPY is up 49 pips (+0.29%) to 170.76.

Coming up for the rest of the Wednesday trading session, we’ve got potential catalysts for volatility in the form of the U.S. ADP Employment Survey at 1:15 pm GMT (155K forecast vs. 175K prev.) and U.S. ISM Non-Manufacturing PMI (53.5 forecast vs. 54.0 prev) at 3:00 pm GMT.  The ADP private payrolls number is often used by traders as a directional guide for the upcoming U.S. Non-Farm payrolls numbers, so it’s definitely one to watch.  The U.S. Beige Book, a report on current economic conditions used by the Federal Reserve, will be released at 7:00 pm GMT.

But the most notable event is the Bank of Canada monetary policy decision, also at 3:00 pm GMT.  Forex Gump shared some thoughts on the event with his forex trading guide, saying that no changes to the interest are expected, and that traders should pay attention for remarks on inflation and the rhetoric tone on Canada’s outlook. It could be a very interesting session–Stay frosty traders!

See also:

Asian Session Recap

U.S. Session Recap

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