London Session Recap – June 20, 2014

  • European Current Account (sa): 21.5B EUR vs. 19.6B EUR previous; (nsa) 18.7B EUR vs. 21.6B EUR
  • U.K. Public Borrowing: 13.3B GBP vs 8.7B GBP forecast, 6.8B GBP previous

The forex markets were mostly quiet on the last trading session of the week, but thankfully Sterling and Kiwi provided some action and trading opportunities.

Even ahead of the positive public borrowing number from the U.K., the British Pound went into rally mode ahead of the London open.  There doesn’t seem to be a direct catalyst, which means that traders are most likely continuing to price in the recent positive data and speculation of an rate hike earlier than previously thought.  The move seems to have topped out, and even reversed against the Greenback and the Loonie.

Also seeing directional bias seems to be the Kiwi, down against the majors.  There doesn’t seem to be a direct catalyst to its broad weakness, which could mean that this week’s slightly disappointing NZ GDP number may still be pricing into the market.

NZD/USD is down 16 pips (-0.20%) to .8695, GBP/NZD is up 57 pips (+0.30%) to 1.9593, and AUD/NZD is up  31 pips (+0.28%) to 1.0804

For the last London and U.S. trading session of the week, the economic calendar is dominated by Canadian data releases.

At 1:30 pm GMT, we’ll get the big data points in the form of Canadian CPI and Retail Sales.  Of course, inflation and consumer spending are very important indicators of economic health, so we could see some sweet volatility to create fresh, final opportunities before forex traders clock out for week.  Both are expected to tick slightly above previous reads, which seems to be what the market is already pricing in ahead of the release as the Loonie is gaining steam on the session across the board.

And at 3:00 pm GMT, we’ll get the European flash Consumer Sentiment Index number, forecasted to tick higher to -6.5 vs. -7.1 previous.  This is a low tier event, so don’t expect too much reaction unless we get a heck of a surprise.

See also:

Asia Session Recap

U.S. Session Recap

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