London Session Recap – March 18, 2014

  • German ZEW Economic Sentiment: 46.6 vs. 52.0 forecast and 55.7 previous; Current Conditions: 51.3 vs. 52.0 forecast and 50 previous
  • European ZEW Economic Sentiment: 61.5 vs. 68.5 previous
  • European Trade Surplus: 900M EUR vs. 13.9B EUR forecast
  • Russia to annex Crimea

The morning London session was hit with a string of weaker-than-expected European ZEW data, helping to spark a bit of risk-off flows in the forex market. Also, it’s reported that Russian President Vladimir Putin supported the request from Crimea to join the Russian Federation, which had a risk-off reaction in the currency markets as well.

Fortunately for risk bulls, fresh news just the wires that Greece and their lenders from the EU/IMF just made an agreement to unlock further bailout aid and that Putin just made a statement to the Russian Parliament that Russia is not interest in the rest of Ukraine. There aren’t any further details on either event at this time, but it’s reeled in the Japanese yen rally we saw initially to start the session, with most yen pairs now almost breakeven on the session:

USD/JPY is near flat (101.75), EUR/JPY recovered from earlier losses, down 11 pips (-0.06%) to 141.57, and GBP/JPY is only down 25 pips (-0.15%) to 169.03.

Coming up in the afternoon London/morning U.S. session, we’ve got another cluster of U.S. events starting at 12:30 pm GMT including U.S. housing and consumer inflation data, and Canadian manufacturing sales data. Headline U.S. CPI is the economic data point to watch, with expectations of 0.1%, inline with last month’s read.

Whether it’s the economic news or the fluid geopolitical situation, there’s no better time that now to stay on your toes and be ready for anything!

See also:

Asian Session Recap

U.S. Session Recap

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