London Session Recap – March 11, 2014

  • German Trade Balance inline with forecast at 15B EUR, above 13.9B EUR previous; Current Account 16.2B EUR vs. 15.3B EUR forecast; below 21.1B EUR previous
  • Swiss Industrial Production y/y lower-than-expected: 0.4% vs. 1.0% forecast
  • U.K.  data mixed.  Industrial Production m/m weaker-than-forecast: 0.1% vs. 0.2% forecast; Manufacturing Production m/m ticks a bit higher: 0.4% vs. 0.3% forecast

The morning London session is a bit livelier today thanks to mixed data results from Europe and the U.K., as well as comments from Bank of England officials.

The British pound is once again on the move to the downside this morning, most likely on recent comments from BOE Deputy Governor Bean that a continued rise in Sterling may hurt the U.K.’s economic recovery.  Also today, BOE Governor Carney stated that there is no rush to increase rates, and that reducing its quantitative easing program will come after they start raising rates.  As expected, the pound is taking a hit on today’s comments: GBP/USD is down 33 pips (-0.20%) to 1.6608, GBP/JPY is down 32 pips (-0.20%) to 93.35, and EUR/GBP is slightly above breakeven for the day  (+0.05%), trading around .8337.

The euro is also taking a bit of punishment with mixed data coming from Europe, but forex traders are probably focusing on the weaker-than-previous current account number from Germany.  Combined with yesterday’s weak French data, the positive vibe sparked last week might be fading for the euro. EUR/USD is down -24 pips (-0.18%) to 1.3849, EUR/JPY is down -18 pips (-0.13%) to 143.08, and EUR/AUD is down -27 pips (-0.18%) to 1.5351.

For the rest of the London session, the forex calendar is pretty light on economic data.  At 2:00 pm GMT, we have the U.S. Wholesale Inventory numbers to potentially spark some action in currencies, with the market forecasting a slight tick higher, 0.4% vs. 0.3% previous.  And the Job Openings and Labor Turnover Survey (JOLTS) will be released at the same time; this is a data point that is closely watched by Fed Chair Janet Yellen, so it’s definitely one to be aware of.

See also:

Asian Session Recap

U.S. Session Recap

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