London Session Recap – March 28, 2014

  • German Import Price Index y/y: -2.7% vs. -2.4% forecast, -2.3% previous
  • French Consumer Spending y/y: -0.3% vs. 0.7% forecast, -0.5% previous
  • U.K. GDP (3rd Est.) y/y inline with forecast and previous at 2.7%
  • U.K. Current Account: -22.4B GBP vs. -14B GBP forecast
  • European Industrial Sentiment: -3.3 vs. -3.5 forecast; Consumer Sentiment at -9.3 vs. -12.5 forecast

The final London trading session of the week was jam packed mostly with data from Europe, fueling a rise in volatility for the euro.

Today’s early European data was mostly disappointing, and the combination of weak German inflation and an unexpected decline in Spanish prices added to the argument that the European Central Bank needs to take easing action next week.  This triggered a quick euro sell off, which has since been faded after better-than-expected European sentiment data:

EUR/USD is down 8 pips (-0.07%) to 1.3729, EUR/JPY is up 13 pips (+0.09%) to 140.52, and EUR/AUD is up 7 pips (+0.05%) to 1.4843.

Sterling is also on the move with a mix positive and negative news, with the 2.7% GDP growth the main focus for currency traders, and providing support for the pound.

GBP/USD is up 8 pips (+0.12%) to 1.6627, GBP/JPY is up 50 pips (+0.30%) to 170.18, and GBP/AUD is up 35 pips (+0.20%) to 1.7966.

For the afternoon London/morning U.S. session overlap, we’ve another batch of U.S. data for currency traders to wrap their heads around including Core PCE index, personal spending and income, and the final University of Michigan Sentiment number.  These are all tier 2 reports, which typically means they aren’t usually market movers unless we do get a big divergence from forecast and/or previous reads.

Finally, we saw equity indexes around the globe close mostly up on the day, which means risk-on sentiment may carry over into the U.S. session–be aware and stay frosty friends!

See also:

Asian Session Recap

U.S. Session Recap

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