London Session Recap – June 16, 2014

  • European HICP y/y inline with forecast and previous at 0.5%; core inline with forecast and previous at 0.7%

The morning London session didn’t have much to go on with only inline European prices data to spark volatility, but we did see a few currencies on the move to present forex traders with fresh opportunities.

Probably the main movers on the session were the commodity dollars, especially the Canadian Dollar.  There doesn’t seem to be a direct catalyst, but the comdolls went into broad sell mode at the London open and they continue to grind lower against the majors. The Loonie is taking the biggest hit, with the Aussie not too far behind.  Best guess is that the broad risk-off sentiment hitting Asia and European equities (possibly on geopolitical risk) is taking the air out of high-yielding currencies.

USD/CAD is up 26 pips (+0.24%) to 1.0875, EUR/CAD is up 35 pips (+0.24%) to 1.4724, and GBP/CAD is up 51 pips (+0.28%) to 1.8455.

To close out the first London and U.S. session of the week, we’ve got a few U.S. data points for forex traders to sink their teeth into.

Starting at 1:30 pm GMT, we’ll get the Empire State survey. This data point gives us a look at the manufacturing conditions in New York state, coming with expectations to tick lower at 15 vs. 19.01 previous.

Then throughout the 2 o’clock hour, we’ll get capacity utilization and industrial production data, and finally at 3:00 pm GMT, we’ll get the NAHB builders survey.  All are second tier events and expected to come in better-than-previous reads, so we may see volatility in the Greenback if we continue to see improving U.S. data.

Again, geopolitical issues from the Middle East are still a concern and causing a sell off in risk assets this move, and could continue to have a broad affect on risk sentiment and the oil markets.  Stay frosty traders!

See also:

Asia Session Recap

U.S. Session Recap

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