- U.K. Unemployment Rate: 6.6% vs. 6.7% forecast, 6.8% previous
- U.K. Claimant Count Change: -27.4K vs. -25K forecast, -28.4K forecast
Despite a mostly quiet session in terms of news events, forex price action was pretty lively across the major currencies.
Of course, we saw movement in the British Pound after better-than-expected unemployment data from the U.K. The reaction was bullish, but for the most part, it’s been faded in enough to push Sterling roughly even on the session against the majors currencies:
GBPUSD is up 18 pips (+0.12%) to 1.6775, GBP/JPY is down 43 pips (-0.25%) to 171.02, and EUR/GBP is down 15 pips (-0.19%) to .8066.
And despite any obvious catalysts, the comdolls are in rally mode, most notably the New Zealand dollar. The Kiwi is probably up not only on the flow of capital from the euro to other currencies, but also on the expectation that we will see another rate hike from the RBNZ after the U.S. session close today. The Kiwi is up the most against the majors:
NZD/USD is up 38 pips (+0.47%) to .8561, NZD/CHF is up 33 pips (+0.44%) to .7697, and EUR/NZD is down 59 pips (-0.37%) to 1.5817
The rest of the Wednesday trading session is void of any scheduled major economic data points, so price action will most likely be influenced by broad risk sentiment driven by the equity and bond markets (Europe and Asia equities were down on the session with the exception of Japan). And we’ll likely see possible follow through in this morning’s London session momentum until the end of the London trading session. Stay frosty!
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