London Session Recap – March 20, 2014

  • German PPI y/y inline with forecast at -0.9% vs. -1.1% previous
  • Swiss National Bank (SNB) holds rates as-is; not necessary to intervene in markets to defend the cap
  • U.K. CBI Industrial Trends: 6 vs. 5 forecast, 3 previous

After a pretty quiet Asia session, volatility got going once again at the open of the morning London session.  There were no major catalysts from economic data releases with the exception of PPI data from Germany; year over year was inline, but the monthly read ticked lower to 0.0% vs. 0.1% forecast (above -0.1% previous). This may have contributed to the euro being down on the session:

EUR/USD is down 64 pips (-0.47%) to 1.3768, EUR/JPY is down 37 pips (-0.25%) to 141.03, and EUR/GBP is down 23 pips (-0.28%) to .8337.

The Swiss National Bank decided on no changes for monetary policy.  They even reaffirmed to Swissy traders that the recent strength in the Swiss franc didn’t warrant any defensive moves at this time.  The reaction for Swiss pairs was bullish:

USD/CHF is up 50 pips (+0.58%) to .8856, EUR/CHF is up 19 pips (+0.16%) to 1.2195, and GBP/CHF is up 64 pips (+0.44%) to 1.4625.

And not unexpectedly, the Greenback was a big mover as European traders got their first crack at pricing in yesterday’s FOMC meeting, which lead to a spike in U.S. Dollar pairs: the U.S. Dollar index is currently trading around 80.23, up +0.25% on the session.

Coming up for the rest of the Thursday session, we’ve got a slew of potential market movers from the U.S.  The most notable will be the Philadelphia Fed survey data (out at 2:00 pm GMT) with an expectation for the Philly Fed to come in much better than previous, 3.2 vs. -6.3. Of course, just be aware of all U.S. data today (initial claims, existing home sales, and leading indicator) starting at 12:30 pm GMT as the U.S. dollar is back in the spotlight!

See also:

Asian Session Recap

U.S. Session Recap

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