London Session Recap – June 2, 2014

  • Swiss Manufacturing PMI: 52.5 vs. 55.5 forecast, 55.8 previous
  • Broad weakness in European Manufacturing PMI: 52.2 vs. 52.5 forecast/previous
  • U.K. Net Consumer Credit weakening: 0.7B GBP vs. 0.8B GBP forecast, 1.0B GBP previous; Mortgage Approvals weaker at 62.9K vs. 64.5K forecast, 67.1 previous
  • U.K. CIPS/Markit Manufacturing PMI inline with forecast at 57.0 vs. 57.3 previous

The first morning London session of June kicks of with fresh data from Europe and the U.K., sparking fresh opportunities for forex traders to start the week right.

The currency moves of note for the morning London session starts with the euro’s reaction to the mostly weaker-than-expected manufacturing PMI numbers from Europe. Even the better-than-expected read from France (49.6 vs. 49.3 forecast) was no help as it continues to show contractionary conditions. Switzerland also showed a weaker-than-forecast number (52.5 vs. 55.5 forecast but still expansionary), while the U.K. printed inline numbers.  The reactions were pretty negative for both the Euro and Swiss France, but we’re seeing the sell-off moves being faded at the moment to bring’em back to near breakeven on the session:

EUR/USD is down 18 pips (-0.13%) to 1.3612, USD/CHF is up 23 pips (+0.26%) to .8969, EUR/GBP is down 2 pips (-0.2%) to .8126

And the big price action of note is Aussie weakness, which continued at the after a brief pullback after the London open.  The Australian Dollar is under pressure after weak Building Approvals data earlier, and still down a good chunk on the session against the majors:

AUD/USD is down 57 pips (-0.61%) to .9248, EUR/AUD is up 86 pips (+0.59%) to 1.4715, and the big mover on the session is GBP/AUD, up 120 pips (+0.67%) to 1.8104

We’re coming up on the first afternoon London trading session of June, and the volatility could continue with U.S. manufacturing PMI at 2:45 pm GMT, and the big potential mover of the session, U.S. ISM manufacturing data at 3:00 pm GMT. This is a tier one event and the expectations are for a 55.5 read, above the 54.9 previous number.  We’ll also get U.S. constructing spending data at the same time to potentially mix it up (possibly stronger at 0.6% vs. 0.2% previous), but the ISM data will most likely be the focus of the session. Stay frosty traders!

See also:

Asia Session Recap

U.S. Session Recap

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