London Session Forex Recap – June 26, 2015

  • German Import Price Index m/m: -0.2% actual v.s. 0.2% expected, 0.6% previous
  • French INSEE Consumer Confidence: 94 actual v.s.93 expected, 94 previous
  • Euro Zone M3 Money Supply y/y: 5.0% actual v.s. 5.4% expected, 5.3% previous
  • Euro Zone Private Loans y/y: 0.5% actual v.s. 0.3% expected, 0.0% previous

With no meeting of the minds between Greece and its creditors, risk aversion was the name of the game during today’s morning London forex session.

There were no major updates during the forex session with regard to the Greek drama, but there was a report that the emergency liquidity assistance (ELA) available to Greece was supposedly held steady for the third consecutive day, probably to put pressure on Greece. There was also a report that Greece still won’t give in to the creditors’ conditions which were deemed “unviable” such as “cutting the pensions of people who live below the poverty line.” Again, not really market-moving news, so most euro pairs barely reacted.

EUR/USD is up by 5 pips (+0.04%) to 1.1202, EUR/JPY is up by 3 pips (+0.03%) to 138.24, EUR/GBP is up by 2 pips (+0.03%) to 0.7116

The Greek drama deadlock caused risk aversion to overcome the markets, with gold up by 0.15% to 1,173.50. The safe-haven Swissy was in demand too since it was the strongest currency during the forex session. Looks like forex traders didn’t buy Swiss National Bank (SNB) Governing Board Chairman Thomas Jordan’s prior statement that the “Swiss franc is currently significantly overvalued.”

USD/CHF is down by 48 pips (-0.52%) to 0.9311, NZD/CHF is down by 44 pips (-0.70%) to 0.6390, EUR/CHF is down by 51 pips (-0.49%) to 1.0430

The risk aversion that permeated the forex session affected the other currencies too. The high-yielding comdolls, for example, took a dive, with AUD/USD down by 12 pips (-0.15%) to 0.7689 and NZD/USD down by 11 pips (-0.17%) to 0.6865.

Another noteworthy currency during the forex session was the pound. It was noteworthy not because it was busting the moves during the forex session, but because it was mostly flat despite the government’s failure to ratify reforms ahead of the Brexit referendum, with GBP/USD up by 3 pips (+0.02%) to 1.5740.

The forex calendar for the upcoming afternoon London/morning U.S. session is a bit on the light side with only the University of Michigan’s revised consumer sentiment (94.6 expected, 94.6 previous), revised consumer expectations (86.9 expected, 86.8 previous), and revised current conditions (106.7 expected, 106.8 previous) on tap.

All three indicators are scheduled for release at 3:00 pm GMT, and Forex traders should note that consumer sentiment is the usual market-mover, but its not expected to show any revision so get ready for any surprises.

Then, at 3:15 pm GMT, we’ll get a central banker bonus round since BOE Governor Mark Carney has a speech at a London conference. As usual, keep an ear out for any shifts in sentiment or juicy hints on future monetary policy.

Stay frosty!

See also:

Asia Session Recap

U.S. Session Recap

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