London Session Recap – March 10, 2014

  • French Industrial Production m/m: -0.2% vs. 0.5% forecast
  • Swiss Retail Sales y/y: 0.3% vs. 2.5% previous
  • EU Sentix Indicator: 13.9 vs. 14.0 forecast; 13.3 previous

The morning session was peppered with tier 2 and 3 European events, but it was probably the economic data from Asia this morning and a currency manipulation scandal that has sparked a bit of volatility for the forex markets after the London open.

The Aussie continues to see weakness after the weak trade deficit number from China (-$22.99B vs. $14.5B forecast), the biggest in 2 years. The Australian dollar is down against the majors on the session: AUD/USD is down 26 pips (-0.29%) to .9033, AUD/JPY is down 25 pips (-0.27%) to 93.35, and EUR/AUD is up 69 pips (+0.46%) to 1.5357.  The Chinese Yuan is also down against the Greenback on the session; USD/CNH is up 256 pips (+0.42%) to 6.1312.

We’re also seeing a good amount of selling in the British Pound in the morning session.  And with a lack of data coming from the U.K., this selling may be related to the currency rigging scandal that the Bank of England may or may not be involved in.  BOE Governor Mark Carney is set to appear before the Treasury Committee this week.  What ever the case may be for volatility, the Pound is down against most of the majors: EUR/GBP is up 29 pips (+0.35) to .8327, GBP/JPY is down 49 pips (-0.26%) to 172.14, and GBP/USD is down 46 pips (-0.27%) to 1.6664.

The Monday calendar for the U.S. session is pretty light with only Canadian Housing Starts as the only economic event to hit the session; at 12:15 pm GMT, it’s set to come in above previous at 190K forecast vs. 180.1K previous.

Besides that, Fed’s Evans speaks on the current economic conditions and monetary policy at Columbus State University at 4:40 pm GMT. This isn’t expected to cause volatility, but any clues of potential surprises at this week’s FOMC meeting is definitely worth keeping an ear out for.  

See also:

Asian Session Recap

U.S. Session Recap

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