London Session Recap – June 9, 2014

  • Swiss, French, and German Bank Holidays
  • European Sentix Index: 8.5 vs. 13.3 forecast, 12.8 previous

Volatility picked up nicely at the London session open, despite a thin market with much of Europe closed for the day. It looks like those forex traders who were around decided to re-establish euro shorts, possibly on the weaker-than-expected Sentix Index number, as the shared currency is sold off against most of the majors on the session:

EUR/USD is down 19 pips (-0.14%) to 1.3620, EUR/JPY is down 24 (-0.17%) to 139.55, EUR/AUD is down 45 pips (-0.31%) to 1.4560

Also of note is the Japanese Yen strength (which continues its intraday rally kicked off by the final quarterly GDP from Japan), and the strength in comdolls, which are the big winners on the day thanks to broad risk-on sentiment with global equity markets:

AUD/USD is up 28 pips (+0.32%) to 0.9357, NZD/JPY is up 20 pips (+0.24%) to 87.22, and CAD/CHF is up 26 pips (+0.32%)

The afternoon London trading session and U.S. session is lacking in economic data points with the exception of Canadian housing starts at 1:15pm GMT.  This second tier event is expected to come in at 185K vs. 195.3K previous.  It’s not normally a market mover, but it does have the potential to spark a short-term rise in volatility for Loonie pairs with a big surprise number.

And with a lack of economic data for the rest of the session, look to the equity and bond markets for hints of risk sentiment to see where currencies may go to next.  Stay frosty! See also:

Asia Session Recap

U.S. Session Recap

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