London Session Recap – April 9, 2014

  • German Trade Balance weaker-than-expected: 16.3B EUR vs. 17.5B EUR forecast
  • U.K. Trade Balance (World) slightly better-than-expected: -9.09B GBP vs. -9.2B GBP forecast

Quiet, quiet volatility for the morning London session despite a couple of tier two events from the U.K. and Europe.

German trade saw both exports and imports slow but exports fell 1.3%, more than the 0.4% in imports and the forecast of 0.5% for exports.  The U.K. hardly did much better as it is in a deficit to the tune of 9.1B GBP in February, but slightly better than economists forecasted. Both currencies did see a slight pick up in volatility, but in a super tight range consistent with the Asia session ranges. Overall, both the euro and sterling have barely budged on the session against most of the majors.

Probably the biggest moves are coming from the Japanese Yen as traders continue to reposition yen bets after yesterday’s Bank of Japan monetary policy meeting where we saw no new policy easing, and a positive outlook despite the impending sales tax hike.  Yen pairs are seeing wider swings, but mixed directional biases:

USD/JPY is down 91 pips (-0.88%) to 102.17, EUR/JPY is up by 30 pips (+0.22%) to 140.67, and AUD/JPY is up 32 pips (+0.34%) to 115.62.

The economic calendar for the rest of the Wednesday session is near empty with only U.S. wholesale inventories at 2:00 pm GMT, and the big event of the day: the U.S. FOMC meeting minutes being released at 6:00 pm GMT.

Forex traders will be paying close attention for individual views from the Committee members for hints on their economic outlook and how fast we may see the Fed hike interest rates.  Not normally a big market mover, but it has the potential to pack a big punch if we see a surprise.  Stay frosty traders!

See also:

Asian Session Recap

U.S. Session Recap

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