London Session Recap – May 28, 2014

  • Swiss GDP q/q: 0.5% vs. 0.6% forecast, 0.2% previous
  • German Import Price Index y/y: -2.4% vs. -2.2% forecast, -3.3% previous
  • German Unemployment Rises: 24K vs. -15K forecast, -25K previous
  • French PPI y/y inline with forecast at -0.9%, -2.0% previous
  • European Sentiment data better-than-expected: Economic sentiment at 102.7 vs. 102.2 forecast, 102.0 previous; Industrial Sentiment at -3 vs. -4 forecast, -3.6 previous
  • U.K. CBI Distributive trades: 16 vs. 35 forecast, 30 previous

Price action picked up in the morning London session thanks to a healthy serving of European data. The data came in mostly weaker-than-expected with the exception of broad European sentiment survey data. The euro fell mildly against most of its major currency counterparts on the stream of weak data:

EUR/USD is down 13 pips (-0.10%) to 1.3619, EUR/JPY is down 16 pips (-0.12%) to 138.82, and EUR/CAD is down 15 pips (-0.11%) to 1.4783

The euro wasn’t the only currency to see selling pressure as the British Pound took a hit after the weak CBI Distributive Trades data.  This gives us a read on the important retail sector, so traders didn’t take too kindly on Sterling on the negative read, making it the big loser on the session:

GBP/USD is down 54 pips (-0.32%) to 1.6752, GBP/JPY is down 58 pips (-0.34%) to 170.74, and EUR/GBP is up 24 pips (+0.30%) to .8127

For the Wednesday afternoon London trading session, it’ll most likely be a quiet one thanks to an empty forex calendar.  Look for forex traders to possibly continue the momentum sparked during the morning London session, any changes to broad risk sentiment, or to prepare for Japanese Retail Sales data very early in the Thursday Asia trading session.  Stay frosty!

See also:

Asian Session Recap

U.S. Session Recap

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