London Session Recap – Sept. 5, 2014

  • German Industrial Production m/m: 1.9% vs. 0.4% forecast/previous
  • French Consumer Confidence: 86 vs. 85 forecast, 86 previous
  • European GDP (2nd Est.) remains at 0.7% forecast/previous

Normally, ahead of the highly anticipated U.S. NFP report, we see low volatility in forex, but we did get some directional moves in the morning London session.

First, we got positive data from Europe in the form of German industrial production and French consumer confidence, and after the beatdown the euro took yesterday it’s no surprise tho see a positive reaction to news (and possibly profit taking on euro short positions. The euro did manage to stage a small rally during the morning session against the majors:

EUR/USD up 9 pips (+0.08%) to 1.2952, EUR/GBP is up 25 pips (+0.32%) to .7950 and EUR/JPY is up 10 pips (+0.08%) to 136.27

The biggest mover on the morning session is probably the British Pound, taking a hit across the board this morning, possibly on renewed concerns of wage growth.

GBP/USD is down 31 pips (-0.19%) to 1.6294, GBP/JPY is down 38 pips (-0.23%) to 171.44, and GBP/AUD is down 61 pips (-0.35%) to 1.7398

Finally, Aussie strength followed through from Asia in to European trading, possibly on European forex traders pricing in Australia’s better-than-expected construction data.

AUD/USD is up 20 pips (+0.22%) to .9363, AUD/JPY is up 16 pips (+0.17%) to 98.53, and AUD/NZD is up 41 pips (+0.38%) to 1.1287

Coming up quickly, we’ll get the monthly monster North American data on the  forex calendar in the form of U.S. and Canadian employment data at 1:30 pm GMT!  Of course, the U.S. number (forecast to come in at 230K vs. 209K previous) is the more highly anticipated one of the two, but don’t slouch on the Canadian jobs number (10k forecast vs. 41.7K previous) because that can cause quite a reaction in Loonie pairs.

And to close out the week, at 3:00 pm GMT, we’ll get the Ivey PMI number for a gauge on the Canadian economy through the eyes of purchasing managers across the country. The forecast is for the number to tick higher to 55.3 vs. 54.1 previous, so USD/CAD may be the pair to watch heading into the weekend. Stay frosty!

See also:

Asia Session Recap

U.S. Session Recap

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