London Session Forex Recap – Mar. 25, 2015

  • Swiss UBS Consumption Indicator: 1.19 vs. 1.24 previous
  • French INSEE Manufacturing Confidence: 99 vs. 100 forecast, 99 previous
  • German Ifo Expectations: 103.9 vs. 103 forecast, 102.5 previous
  • German Ifo Current Conditions: 112 vs. 112 forecast, 111.3 previous
  • German Ifo Business Climate: 107.9 vs. 107.3 forecast, 106.8 previous
  • U.K. BBA Mortgage Approvals: 37.3 vs. 36.65 forecast, 36.39 previous

The euro was center stage in the morning London forex session after upbeat reads from the German Ifo survey data, a survey answered by 7,000 firms in Germany on the current business climate as well as their future outlook.  It was another tick higher, nearly hitting levels we haven’t seen since the Summer of 2014, adding to recent data (like yesterday’s European PMI data) that conditions really are improving in the euro zone.  It’s all green for the euro across the board, especially against the comdolls:

EUR/AUD is up 72 pips (+0.52%) to 1.3937, EUR/CAD is up 99 pips (+0.73%) to 1.3745, and EUR/USD is up 69 pips (+0.63%) to 1.0992

Sterling also joined in the rally party finding buyers throughout the morning session, possibly on this morning’s better-than-expected BBA mortgage approvals data, or maybe even some profit taking after the beating it took from this week’s weak U.K. CPI data. Whatever the case may be, it looked like every dip in a Sterling pair was a buying opportunity and the British pound seems to be holding onto those gains going in to the morning U.S. session, especially against the comdolls as well and with exception to the euro:

GBP/USD is up 75 pips (+0.51%) to 1.4921, GBP/AUD is up 76 pips (+0.40%) to 1.8921, EUR/GBP is up slightly by 10 pips (+0.14%) to .7365

The forex calendar for the Wednesday afternoon London/morning U.S. session is light but has potential to give forex traders a reason to makes some moves with the U.S. durable goods orders at 12:30 pm GMT.  This is a monthly measure of sales on products that aren’t frequently purchased (e.g., home furnishings, consumer electronics, automobiles, etc.) and it can be a market mover only because it does tend to be volatile and can surprise traders, as well as be seen as a leading indicator of manufacturing productivity.

The forecast for the headline numbers is 0.2% vs. 2.8% previous, and keep in mind that in recent releases, the actual number has been disappointing relative to expectations more times than not so the data trend is lower.  This is especially the case for the core durable goods data (durable goods minus transportation items), which printed a positive number last month for the first time since September 2014.

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!