- Europe and U.K. Bank Holiday
With Europe and the U.K. still on holiday, it was a quiet London session to start the week. Japan was open for trading and price action was dictated by the weaker-than-expected Trade Balance data. The reaction was bearish for the yen as weaker Japanese economic data supports a potential increase in quantitative easing by the Bank of Japan down the road. The Yen weakness continued during the London session, pushing up Yen pairs higher on the day.
USD/JPY is up 22 pips (+0.22%) to 102.59, EUR/JPY is up 36 pips (+0.26%) to 141.74, and GBP/JPY is up 42 pips (+0.25%) to 172.34.
Outside of the major currencies, the Russian Ruble is down again big time: USD/RUB is up 48 pips (+1.38%) to 35.65. The weakness continues as it looks like the Russian-Ukraine conflict has no signs of de-escalating at this time.
The U.S. and Canada will be open for trading, and coming up in the Monday afternoon London session, we’ve got one piece of data in the form of the U.S. Leading Indicator number. Expectations are for a 0.7% m/m read vs. the 0.5% previous number. This is a low tier event, which means we’ll probably have to see a really big discrepancy between the actual and forecast for it to spark volatility. This means that currency price action and risk sentiment will take its cues from the U.S. markets.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!