London Session Recap – Sept. 15, 2014

  • Swiss Producer & Import Prices m/m: -0.2% vs. 0.0%
  • European Trade Balance: 12.2B EUR vs. 15.5B EUR forecast, 13.8B EUR previous

Forex price action for the London morning session was surprisingly lively despite a light calendar from Europe.

The euro was under pressure across the board right from the open.  Without a direct catalyst that I can see, it could be a combination of broad risk-off sentiment from slowing Chinese data, an anti-euro party winning parliamentary seats in Germany, or that the bounce higher in the euro all last week might have finally run out of steam.  Whatever the case may be, euro has been on a straight shot move lower on the session:

EUR/USD is down 42 pips (-0.33%) to 1.2914, EUR/JPY is down 57 pips (-0.41%) to 138.50, and EUR/GBP is down 11 pips (-0.14%) to .7951

The other price action of note is the New Zealand Dollar, which seems to have found a bit of strength at the London open.  Again, no direct catalyst for this move that I can see, which could also be minor relief from the strong selling that’s been going on since mid-July, or profit taking ahead of this week’s quarterly GDP numbers from New Zealand:

NZD/USD is up 37 pips (+0.46%) to .8169, NZD/JPY is up 20 pips (+0.23%) to 87.61, and NZD/CHF is up 61 (+0.81%) to .7653

The forex calendar for the first afternoon London/morning U.S. session of the week is pretty light with only a few data points from the U.S.

At 1:30 pm GMT, we’ll got the Empire State Survey, which showed a better-than-expected number of 27.5 vs. 16 forecast, 14.69 previous.  This is a positive read on conditions in the northeast region, and so far the reaction has be choppiness from the Greenback.

At 2:15 pm GMT, we’ll get the U.S. capacity utilization (79.3% forecast vs. 79.2% previous) and industrial production (0.3% forecast vs. 0.4% previous) numbers.  These are mid-tier events so don’t expect too much volatility unless we get a big surprise number, and even then a strong reaction may be short-lived.

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!