London Session Forex Recap – Nov. 24, 2014

  • German Ifo Current Conditions: 110 vs. 107.9 forecast, 108.4 previous
  • German Ifo Expectations: 99.7 vs. 98.4 forecast, 98.3 previous
  • German Ifo Business Climate: 104.7 vs. 103 forecast, 103.2 previous

The Ifo Institute for Economic research released their latest monthly survey results, showing an increase in positive sentiment from approximately 7,000 firms across Germany. This was the first positive sign for the business climate in over six months, so the reaction in the euro was understandably bullish on the release.  While the move hasn’t been faded yet, the momentum is slowing down at the moment for the euro rally, but most euro pairs are still trading near the highs of day.

EUR/USD is up 43 pips (+0.35%) to 1.2405, EUR/JPY is up 109 pips (+0.75%) to 146.40, and EUR/AUD is up 138 pips (+0.97%) to 1.4380

It seems London forex traders are taking the hand off from Asia who jumped back onto the Japanese yen sell off, with most yen pairs steadily moving higher on the session:

USD/JPY is up 49 pips (+0.41%) to 118.28, GBP/JPY is up 107 pips (+0.58%) to 185.48

And the final move of note is the Australian dollar, weaker across the board but with no direct catalyst for the selling that seems to have started in Asia. It could be a reaction to China cutting its interest rates recently, but whatever the driver may be, the Aussie is down across the board with momentum still pretty strong to the downside:

AUD/USD is down 52 pips (-0.61%) to .8624, AUD/JPY is down 23 pips (-0.23%) to 102.02, and AUD/NZD is down 37 pips (-0.34%) to 1.0961

The forex calendar for the Monday afternoon London/morning U.S. session is a nearly a barren one with only U.S. Market Services PMI data in the lineup, set for release at 2:45 pm GMT. This is a low to mid tier event with expectations of a tick lower (56.8 vs. 57.1 previous), but I don’t think we’ll see much reaction from the data point unless there’s a big negative surprise.

Besides that, the moves in Asia and Europe may likely carry over, and forex traders may take fresh cues from U.S. equity market sentiment which seems to be carrying over the positive vibes from Asia and Europe equity markets.  Stay frosty!

See also:

Asia Session Recap

U.S. Session Recap

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  • Geert van Dijk

    Great reads every day

    • Dr. Pipslow

      Greetings Geert van Dijk…on behalf of the BabyPips.com team, thanks for the kind comments and for checking us out everyday! We really appreciate it!

      • Geert van Dijk

        8 months too late, but still reading, keep up the good work ya’ll 😉