London Session Recap – July 28, 2014

  • No economic data released from Europe or the U.K.

With an empty calendar ahead of a big week of economic data, there wasn’t much forex volatility to speak of during the morning London session.  The news headlines were also pretty bare to start the week with the focus continuing to be on Russian sanction developments, which had little influence on broad risk sentiment this morning.

For the forex traders who decided not to sleep in, there was opportunity to catch some pips in the only moving major currency this morning: the Australian Dollar.  There doesn’t seem to be a direct catalyst for its directional move, but whatever it may be, it’s the only currency providing volatility and any significant gains on the session:

AUD/USD is up 14 pips (+0.15%) to break .9400, AUD/JPY is up 15 pips (+0.17%) to 95.76, and AUD/NZD is up 22 pips (+0.20%) to keep it trading around the major psychological level of 1.1000

The forex calendar for the Monday afternoon U.K./morning U.S. trading session is bare as well with only U.S. pending home sales data at 3:00 pm GMT.  This number has been in an uptrend since March, but we’ve got a forecast for a lower-than-previous read of 0.5% rise vs. 6.1%.

Given the surprise mixed reads we saw last week from existing and new home sales, I’d stay on my toes and wait for the results on this one before acting.  And given that this is the only economic data point of the day, we could see a short-term burst to volatility, especially given the low volume, summer conditions.  Stay frosty forex friends!

See also:

Asia Session Recap

U.S. Session Recap

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