London Session Recap – July 7, 2014

  • Swiss Unemployment inline with forecast/previous at 3.2%
  • German Industrial Production m/m: -1.8% vs. 0.2% forecast, -0.3% previous
  • European Sentix Indicator: 10.1 vs. 7.8 forecast, 8.5 previous

It looks like the focus for the morning was the British Pound, which had forex traders hitting the sell button at the London open.

There doesn’t seem to be a direct catalyst at the European open, but it looks like it could be a mix of profit taking after the recent strong rally and risk aversion flows as Asia and European equities are taking a hit as well.  Whatever the reason may be, Sterling is taking a broad hit in what would be characterized as mostly a snoozer of a session across the major currencies:

GBP/USD is down 26 pips (-0.16%) to 1.7130, GBP/JPY is down 50 pips (-0.29%) to 174.62, and GBP/CAD is down 42 pips (-0.22%) to 1.8233.

Coming up for the first U.S. trading session of the week, we’ll get mid-tier Canadian economic data to hopefully spark some momentum in the forex markets.

At 1:30 pm GMT, we’ll see the Canadian building permits number with a forecast of 2.0% vs. 1.1% previous. This data point has been mostly weak through most of 2014, so a positive read above expectations should give the Loonie a short-term boost.

And at 3:00 pm GMT, we may see a change in fortunes for the Loonie with the Ivey PMI number.  This is forecasted to come in at 52 vs. 48.2 previous, but this number has been trending lower since March.  Stay on your toes forex traders if you plan on trading to take in a few more pips before the end of the Monday session!

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!