London Session Recap – June 26, 2014

  • French INSEE Consumer Confidence index ticks higher: 86 vs. 85 forecast/previous
  • Bullish comments from Governor Carney at Bank of England Financial Stability report

Euro traders are back in sell mode in the morning London session and Carney’s comments boosts Sterling once again.

There doesn’t seem to be a direct catalyst for euro weakness other than a cut to Italy’s growth forecast by the Confindustria, an employers association.  While not a closely watched event, it does add to this week’s weak showing from European economic data.  The euro is down on the session, but the bleeding seems to have stabilized:

EUR/USD is down 17 pips (-0.13%) to 1.3610, EUR/JPY is down 24 pips (-0.18%) to 138.48, and one of the big movers on the session, EUR/NZD, is down 50 pips (-0.32%) to 1.5538

From the U.K., we got the BOE Financial Stability report, and while there was a lot said, it looks like forex traders were focusing on new housing measures to cool the red-hot housing market.  It looks like traders were anticipating something positive from the event as Pound traders went into buy mode as soon as the London session opened up, and continued well into the event.  Sterling is up on the session, and nicely up against its European counterparts:

GBP/USD is up 36 pips (+0.21%) to 1.7018, EUR/GBP is down 27 pips (-0.33%) to .7996, and GBP/CHF is up 59 pips (+0.39%) to 1.5211

We’ve got mid-tier economic events for forex traders to chew on in the afternoon London and U.S. trading session.

At 1:30 pm GMT, we’ll get U.S. data in the form of the weekly initial claims, personal income and spending numbers, and the Core PCE Price Index number.  Most are expected to come inline with previous reads, with the exception of the personal spending number (+0.4% forecast vs. -0.1% previous).  Of course, after the big U.S. GDP surprise yesterday, anything can happen, so be on your toes during this hour of multiple event releases.

And just after the U.S. session close, we’ll see the New Zealand trade balance number at 11:45 pm GMT.  The forecast is for 250M NZD vs. 530M NZD previous, so be sure to check those Kiwi open orders and trades before calling it a day.  Stay frosty!

See also:

Asia Session Recap

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together. In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.  Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!