London Session Forex Recap – Jan. 12, 2015

  • French BoF Business Sentiment: 96 vs. 97 forecast/previous

London session forex traders spiked up volatility right from the open, but direction has been pretty mixed with a near empty economic calendar pushing traders to fall on overall broad market sentiment.

The euro saw some pressure right from the open, likely in anticipation of upcoming European economic data this week (including industrial production, German and French consumer inflation data) that could potentially add more fuel to the fire of a large quantitative easing program from the ECB. Again, price action was mixed as the euro was down only vs. the Greenback and Sterling:  EUR/USD is down 41 pips (-0.35%) to 1.1799, EUR/GBP is down 14 pips (-0.18%) to .7790

We’re seeing broad comdoll weakness, likely sentiment sparked by continued weakness in the commodities market thanks to uncertainty with central bank policies and geopolitical issues (Greece, Russia, terrorism in France, etc.):

AUD/USD is down 55 pips (-0.66%) to .8143, NZD/USD is up 67 pips to .7757, USD/CAD is up 40 pips (+0.33%) to 1.1894

And the Japanese yen is seeing weakness as well, possibly on broad positive risk sentiment, taking its cues from the green we’re seeing in the international equity markets; possibly on more easy money coming from central banks? Nikkei 225 up +0.18%, CAD 40 up +1.09%, FTSE down -0.03%

The forex calendar for the Monday afternoon London/morning U.S. session is empty to start out the week, so currency price action may take it’s cues from risk sentiment in the U.S. equity and bond markets, which may take cues from the mostly positive rise in equity markets in Asia and Europe. Stay frosty!

See also:

Asia Session Recap

U.S. Session Recap

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