London Session Forex Recap – Oct. 12, 2015

  • French Current Account: €0.2B actual v.s. -€0.4B previous
  • ECB’s Benoit Coeure: still too early for more stimulus
  • Canadian forex traders away for Thanksgiving Day
  • Columbus Day in the U.S. today
  • Lots of central banker speakers for the upcoming session

The lazy mood from the earlier Asian session continued in today’s morning London forex session since there was only one item on the docket. There were some movements, however, since forex traders were probably taking cues from the commodities market.

As I mentioned in my Top Forex Market Movers for last week, a commodity rally has been helping to keep the Aussie and the Kiwi supported. Today, commodities extended that rally, with gold up by 0.89% to $1,166.20 per troy ounce and Brent crude oil up by 0.52% to $53.19 per barrel during the forex session. As a direct consequence, most Kiwi and Aussie pairs were able to extend their gains after a strong performance during the earlier Asian forex session. The Loonie was feeling a bit under the weather despite the higher oil prices, though.

AUD/USD is up by 23 pips (+0.32%) to 0.7368, AUD/JPY is up by 24 pips (+0.27%) to 88.48, AUD/CAD is up by 40 pips (+0.43%) to 0.9527

NZD/USD is up by 9 pips (+0.14%) to 0.6721, NZD/JPY is up by 9 pips (+0.11%) to 80.75, NZD/CAD is up by 21 pips (+0.25%) to 0.8692

USD/CAD is up by 18 pips (+0.14%) to 1.2932, EUR/CAD is up by 29 pips (+0.20%) to 1.4708, GBP/CAD is up by 46 pips (+0.24%) to 1.9861

As for the euro, it started out on a strong footing, thanks to France’s current account climbing back to positive territory. This means that the value of exported goods and services exceeded the value of imports, which is good for economic growth. European Central Bank (ECB) Executive Board Member Benoit Coeure also said in an interview that it’s still too early for more stimulus, which probably helped to prop up the euro as well.

The euro’s bullish momentum later began to lose steam, however, since forex traders were probably abandoning the low-yielding euro for commodities, the higher-yielding comdolls, or equities given that the DAX was up by 0.20% to 10,116.00 during the forex session.

EUR/USD is up by 11 pips (+0.10%) to 1.1376 with 1.1395 as session high, EUR/JPY is up by 9 pips (+0.07%) to 136.65 with 136.94 as session high, EUR/CHF is down by 3 pips (-0.03%) to 1.0925 with 1.0942 as session high.

The forex calendar for the upcoming afternoon London/morning U.S. session only has the CB leading index (-0.3% previous) for the U.K. at 2:30 pm GMT and both Canadian and U.S. forex traders are away on holiday, but we’ve got a whole line-up of central bank speakers on the docket, so stay on your toes and remember to keep an ear out for any juicy updates on the future direction of monetary policy and/or shifts in economic outlook.

First up is Atlanta Federal Reserve President Dennis Lockhart. He started sharing his economic outlook for the U.S. at around 1:10 pm GMT, but he hasn’t said anything market-moving yet. The text of his speech should be available here soon, though.

Next, at 2:00 pm GMT, forex traders may put their sights on the pound since MPC member Martin Weale will be giving a speech at the University of Groningen.

After that, at 3:30 pm GMT, forex traders would probably shift their attention back to the Greenback since Chicago Federal Reserve President Charles Evans will be talking about the economy in Chicago. Like Lockhartt, Evans is also an FOMC member, so his outlook on the economy holds some weight since he gets to vote on whether or not to hike rates.

Later on, at 6:20 pm GMT, we’ll get to hear BOC head honcho Stephen Poloz deliver a speech titled “Integrating Financial Stability into Monetary Policy” in Washington. The text of his speech is scheduled for release 10-15 minutes before the speech, so go ahead and grab a copy here once it becomes available.

Finally, at 9:30 pm GMT, Federal Reserve Governor Lael Brainard, who is another FOMC member, will also talk about his economic outlook in a speech over at Washington, so keep an eye on a potential reaction from the Greenback. Stay frosty!

See also:

Asia Session Recap

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. 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 weeks!