London Session Recap – March 21, 2014

  • European Current Account (sa): 25.4B EUR vs. 20B EUR previous
  • U.K. Public Borrowing (PSNB ex. interventions): 9.3B GBP vs. 8.6B GBP forecast, -4.7B GBP previous
  • Canadian Retail Sale better-than-expected: Headline 1.3% vs. 0.7% forecast and -1.9% previous
  • Canadian CPI higher-than-expected: Core 0.7% vs. 0.5% forecast and 0.2% expected

After a pretty active trading week for the forex markets, the morning London session was pretty quiet despite a few mid-tier events to bring in some volatility.

Despite better-than-expected data for both Europe and the U.K., both currencies are mostly down for the day, with the British pound seeing bigger volatility on the session. Comdolls were also on the move, especially after Canada surprisingly posted better-than-expected retail sales and CPI data. This made for the biggest moves in Sterling and commodity dollar cross pairs as the biggest movers on the session:

GBP/CAD is down 90 pips (-0.49%) to 1.8461, GBP/AUD is down 82 pips (-0.45%) to 1.8172, and USD/CAD is down 52 pips (-0.47%) to 1.1191.

The rest of the Friday session is void of any economic events, but there are speakers from various central banks to close out the week.  The one to keep an ear out for is from Federal Reserve member Richard Fisher, who is giving a speech about forward guidance at 5:45 pm GMT.  Besides forward guidance, any other insights to this week’s FOMC monetary policy decision could spark volatility for the Greenback.  The surprise in Canadian data should carry the Loonie around until of the end of this week’s trading, and the Crimea story will continue to be relevant and fluid for risk sentiment traders… Stay frosty!

See also:

Asian Session Recap

U.S. Session Recap

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