London Session Recap – May 12, 2014

  • Swiss Retail Sales y/y: 3.0% vs. 1.2% previous
  • French BoF Business Sentiment Index: 98 vs. 99

Comdolls look like the big movers on the session, rallying higher since the London open on generally positive risk sentiment. The Aussie and the Kiwi are especially seeing buying support, possibly on a positive NAB Business Confidence index read (6 vs. 4 previous).  Both currencies are higher on the session, especially against the Japanese Yen and Swiss Franc:

AUD/JPY is up 26 pips (+0.36%) to 95.55, NZD/JPY is up 24 pips (+0.29%) to 87.89, and AUD/NZD is up 26 pips (+0.24%) to 1.0869.

In Europe, no major economic data released, so the slight weakness in the euro is probably a carry over from last week’s bearish ECB monetary policy meeting, and we’re seeing a solid rally in Sterling against the majors on the usual rate hike expectations:

GBP/USD is up 43 pips (+0.26%) to 1.6887, GBP/JPY is up 63 pips (+0.37%) to 172.12, and GBP/CHF is up 59 pips (+0.40%) to 1.4990

The afternoon London session and U.S. is void of any economic data but at 5:00 pm GMT, Philadelphia Fed President Plosser is giving a conference, and at 7:00 pm GMT, we’ll see the Federal Budget Balance report.  Both are not normally market movers, but something to be aware of in case we see surprise rate hike hints from Plosser.

With the lack of any data today and all seems quiet on the geopolitical news front, the low volatility and positive sentiment in Asia and Europe may likely continue through the rest of the Monday session.

See also:

Asian Session Recap

U.S. Session Recap

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