London Session Recap – April 14, 2014

  • European Industrial Production y/y: 1.7% vs. 1.5% forecast, 1.6% previous
  • ECB President Mario Draghi and crew jawbones euro lower

No major catalysts from economic data, but we’re getting some volatility in the euro thanks to comments from European Central Bank members this weekend that further appreciation in the shared currency may trigger monetary stimulus.  Violence in Ukraine as the government engages pro-Russian forces attempting to take other cities is also putting pressure on the euro. Volatility picked up at the London session open in favor of euro bears:

EUR/USD is down 57 pips (-0.41%) to 1.3826, EUR/JPY is down by 33 pips (-0.24%) to 140.71, EUR/GBP is down 20 pips (-0.25%) to .8271.

And with no direct catalysts, commodity dollars are noticeably up on the session, mainly the Aussie and the Loonie:

EUR/CAD is down 66 pips (-0.44%) to 1.5169, EUR/AUD is down 74 pips (-0.50%) to 1.4696, and AUD/NZD is up 56 pips (+0.52%) to 1.0861.

For the Monday afternoon London session, we’ve got U.S. Retail Sales data at 1:30 PM GMT, and the U.S. Business Inventories number at 3:00 pm GMT.  The retail sales data is the one to watch, with expectations much higher than the previous reads (0.9% m/m forecast vs. 0.3%). The Greenback has been on a run against the Japanese Yen (USD/JPY up +0.31% to 101.80), and good retail sales data may give the pair a further boost on the session. Stay frosty traders!

See also:

Asian Session Recap

U.S. Session Recap

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