London Session Recap – April 25, 2014

  • U.K Retail Sales data mixed as the actual comes in above expectations, but below previous reads.  Headline m/m: 0.1% vs. -0.4% forecast, 1.3% previous
  • U.K. BBA Mortgage Approvals lower: 45.93K vs. 48.95K forecast, 47.18K previous

U.K. retail sales came in mixed across the board with the headline reads, both monthly and yearly, above expectations but lower than previous reads. The core numbers were even more mixed as the yearly read came in below expectations but above the previous read (4.2% vs. 4.5% exp, 3.9% previous).  Forex traders obviously didn’t know what to do with this information as we saw whipsaw action in the British Pound through out the morning London session, but against many of the majors, Sterling is still up on the session:

GBP/USD is up 11 pips (+0.07%) to 1.6809, EUR/GBP is down 3 pips (-0.04%) to .8226, and GBP/CHF is up 16 pips (+0.11%) to 1.4819.

The Japanese Yen is also mover on the session, mainly on geopolitical fears that the Russia-Ukraine tension will escalate, causing risk aversion moves across European markets.

USD/JPY is down 27 pips (-0.27%) to 102.02, EUR/JPY is down 35 pips (-0.25%) to 141.10, GBP/JPY is down 30 pip (-0.18%) to 171.50.

The final London/U.S. session of the week is pretty light on data with only the final read on University of Michigan Sentiment Index in the lineup. Expectations are for an 83.0 read vs. 82.6 previous. Final reads don’t usually deviate from the preliminary reads and usually are not market movers.  But it is a tier two event, so it could spark volatility if the actual number is far off expectations or previous read.

With a light event calendar, broad risk sentiment may be influenced by the earnings data coming from U.S. companies coming out all through the day, as well as end of week profit taking and weekend risk aversion.  Stay frosty friends!

See also:

Asian Session Recap

U.S. Session Recap

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