London Session Recap – April 11, 2014

  • German inflation data (Final) inline with expectations: y/y HICP 0.9% vs. 0.9% forecast and previous
  • German Wholesale price index ticks higher: y/y -1.7% vs. -1.8% previous
  • French Current Account: -1.4B EUR vs. -3.7B EUR prev
  • U.K. Construction Output weaker at-2.8% vs. -1.3% forecast

No major catalysts during the morning London session but the forex markets are on the move thanks to the Yen and Sterling.

The combination of weak Chinese data this week (CPI and exports lower), the consensus in the BOJ that the Japanese economy was improving, and broad risk aversion is boosting the Yen to close the week up big against its major counterparts, especially the comdolls.

On the session: AUD/JPY is down 26 pips (-0.26%) to 95.28, NZD/JPY is down by 11 pips (-0.12%) to 87.95, CAD/JPY is down 29 pips (-0.32%) to 92.48.

The British Pound is also the big mover on the session after much weaker-than-expected construction output data, making Guppy relatively one of the biggest moving pairs of the session: GBP/JPY is down 61 pips (-0.37%) to 169.71.

Coming up in the Friday afternoon London session, we’ve got the U.S. Producer Price Index at 1:30 PM GMT, and the preliminary University of Michigan Sentiment number at 2:55 pm GMT.  Both are potential market movers, especially the producer price data (0.1% forecast vs. -0.1%) as interest rates have become more in focus as of late.  And given the broad market sell off in risk across the globe, it should be a very interesting day for the Greenback to close out the week.  Stay frosty!

See also:

Asian Session Recap

U.S. Session Recap

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