London Session Recap – July 8, 2014

  • German Current Account: 13.2B EUR vs. 14.5B EUR forecast, 18.4B EUR previous
  • German Trade Balance: 17.8B EUR  vs. 16.2B EUR forecast, 17.4B EUR previous
  • French Trade Balance: -4.9B EUR  vs. -4.2B EUR forecast, -3.93B EUR
  • Swiss CPI m/m lower: -0.1% vs. 0.1% forecast, 0.3% previous
  • U.K. Industrial Production m/m: -0.7% vs. 0.3% forecast, 0.3% previous
  • U.K. Manufacturing Production m/m: -1.3% vs. 0.4% forecast, 0.3% previous

Comdolls–specifically the Kiwi Dollar–were on a tear higher after new broke of a Fitch upgrade to New Zealand’s sovereign debt and outlook. Rating upgrades are currency positive because when local assets are more secure, it attracts foreign capital into the country thus requiring purchasing the local currency. The comdolls were already in rally mode during Asia before popping higher on the news, and after the second round of buying after the London open, it looks like the comdolls have given back a bit of their gains:

NZD/USD is up 24 pips (+0.29%) to .8778, AUD/USD is up 24 pips (+0.27%) to .9395, and NZD/CHF is up 23 pips (+0.31%) to .7847

The other big mover in the morning session was the British Pound, hit by ugly data from the industrial and manufacturing sectors at 9:30 am GMT.  The initial reaction was big and quick, but the move seems to have stabilized and bouncing at the moment.  GBP/USD was down as much as 35 pips to 1.7085 before buyers faded the move not too long after the release.

And the euro is slightly under pressure after posting mixed trade balanced data. Of course, the shared currency is feeling most of the pain against the comdolls to create some of the bigger moves of the day: EUR/AUD is down 49 pips (-0.35%) to 1.4461, EUR/NZD is down 41 pips (-0.27%) to 1.5477, and EUR/CAD is down 17 pips (-0.12%) to 1.4515

Coming up in the afternoon U.K./morning U.S. trading session is a light calendar of U.S. data.

Ahead of the U.S. open at 12:30 pm GMT, we got the NFIB Small Business Index, which came in at 95.0 vs. 97.0 forecast/96.6 previous.  This along with the JOLTS job openings data at 3:00 pm GMT, should give us a fresh look at employment conditions in the U.S.  So far, not much of a bearish reaction in the Greenback but we may get a bit more movement after the JOLTS data later.

And at 8:00 pm GMT,  we’ll get the U.S. consumer credit number.  The forecast is for the number to come in at $20B vs. $26.85B previous, and it’s a mid-tier number so there is potential for brief movement if there is a big surprise. Stay frost forex traders!

See also:

Asia Session Recap

U.S. Session Recap

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