London Session Recap – April 24, 2014

  • Swiss Trade Balance slightly lower: 2.05B CHF vs. 2.29B CHF previous
  • German IFO data mostly positive: Business Climate 111.2 vs. 110.4 forecast, 110.7 previous
  • U.K. CBI Distributive Trades better-than-expected: 30% vs. 17%

We got quite a few bits of positive news out of Europe, bringing positive sentiment to European assets and pushing up their currencies on the day.  ECB President Mario Draghi was also quoted earlier today that weaker inflation could trigger broader asset buying, in which it looks like the markets priced in positively for European risk assets.

It also looks like forex traders priced this new news against the recent weak biases on the comdolls, sparked by weak China data earlier this week.  Even the Kiwi Dollar–who saw support briefly after the Reserve Bank of New Zealand raised rates to 3.00% early this morning–felt pressure from sellers right at the London open, especially against the European currencies. This made those cross pairs the biggest movers of the day.

GBP/AUD is up 66 pips (+0.37%) to 1.8124, AUD/CHF is down 24 pips (-0.29%) to .8176, and the EUR/NZD is up 44 pips (+0.28%) to 1.6135.

The afternoon London/U.S. is coming up pretty quickly, and it’s lined up with data from the U.S. that could give the forex markets a punch.

We’ve got the U.S. Durables Goods and Initial Claims data at 1:30 pm GMT.  The Durables Goods data is the one to watch, with expectations for the core number to come in at 0.6% vs. 01.% previous.  This number can be very volatile with its actual reads, so it be wary of trying to predict the outcome.  Also, broad risk sentiment is up on the session, but market sentiment may be influenced by the earnings data coming from U.S. companies coming out all through the day.  Stay frosty friends!

See also:

Asian Session Recap

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

 Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!