London Session Recap – Aug. 27, 2014

  • German GKF Consumer Sentiment: 8.6 vs. 8.9 forecast/previous
  • Swiss UBS Consumption Indicator: 1.66 vs. 2.07 previous
  • German Import Price Index m/m: -0.4% vs. -0.1% forecast, 0.2% previous

The euro continued to see volatility in the morning London session after taking a beating during the Tuesday session.  It didn’t help that we saw another setback in inflation through the weak German Import Price Index reads, and in German sentiment from a survey conducted by Gfk showing that consumers think the economic recovery is in trouble.  The euro remains mostly lower on the session (mainly against the comdolls), but may be finding a bottom as Schaeuble tries to play down ECB easing speculation this morning:

EUR/CAD is down 43 pips (-0.30%) to 1.4374, EUR/AUD is down 37 pips (-0.27%) to 1.4107, and EUR/NZD is down 50 pips (-0.32%) to 1.5743 to be the big euro pair mover on the session.

Speaking of the comdolls, they seem to be in rally mode despite having a direct catalyst for the strength.  Most likely, this is due to broad risk sentiment, which seems to be on the upside this morning among currencies with Sterling up on the session and safe havens (like the Japanese Yen and Swiss Franc) mostly down.  Like yesterday, the Aussie and Loonie are big gainers on the session:

AUD/USD is up 38 pips (+0.42%) to .9344, USD/CAD is down 43 pips (-0.40%) to 1.0904, and GBP/USD is up 52 pips (+0.32%) to 1.6591

The forex calendar for the afternoon U.K./morning U.S. session is barren, which means forex traders will have to focus on this morning’s moves and momentum, as well as any geopolitical news from the Middle East or Ukraine, and/or market sentiment changes coming from the U.S. equity and bond markets.

See also:

Asia Session Recap

U.S. Session Recap

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