- French Industrial Production m/m: -0.8% vs. 0.2% forecast, 0.0% previous
- French Manufacturing Production m/m: -0.2% vs. 0.0% forecast, 0.3% previous
- U.K. Trade Balance: -9.62B GBP vs. -9.5B GBP forecast, -10.51B GBP previous
The forex calendar was light for the morning London session, but we did see a slight pick up in volatility after the U.K. trade balance data was released. And while it did come in below expectations, it did improve over the previous month’s number; the mix could be a reason why we saw a choppy initial reaction. After initial selling pressure, it was only an hour or so before currency traders began buying back Sterling. Overall, the British pound is mixed on the session:
GBP/USD is up 23 pips (+0.15%) to 1.5686, GBP/CHF is up 8 pips (+0.05%) to 1.5222, and EUR/GBP is up 3 pips (+0.3%) to .7896
Overall, volatility has been light and the drivers for currencies continue to be the recent return to safe havens on fears of a slow down in China, boosting low-yielding currencies like the Japanese yen:
USD/JPY is down 76 pips (-0.64%) to 118.90, EUR/JPY is down 75 pips (-0.51%) to 147.34, and GBP/JPY is down 95 pips (-0.51%) to 186.50
The forex calendar for the Wednesday afternoon London/morning U.S. session is barren with only the U.S. Federal Budget Balance data (-$65B forecast v.s -$135B previous) in the lineup. This is due for release at 7:00 pm GMT, but since this is a low to mid tier event, don’t expect much volatility or reaction from forex traders without a huge surprise.
But we do have a top tier event right around when the U.S. session wraps up and the Asia session opens up: the Reserve Bank of New Zealand monetary policy statement. This event comes out at 8:00 pm GMT with an expectation that the RBNZ will hold rates at 3.50% and continue the rhetoric that they will remain in a “period of assessment for now. This should bring in a nice spike in volatility for the Kiwi that has been under pressure as of late. Stay frosty!
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!