London Session Forex Recap – Nov. 3, 2015

  • Spanish unemployment change: 82.3K vs. 70.3K expected, 26.1K previous
  • UK construction PMI: 58.8 as expected vs. 59.9 previous
  • Dairy auction currently underway
  • New Zealand’s jobs data for later

Today’s morning London forex session was rather subdued, with most pairs bound in tight ranges or moving at a grinding pace. The Greenback, the Japanese yen, and the Loonie were noticeably restless, though.

With only a few items on the docket, forex traders apparently turned to risk sentiment for direction. And it was a risk-off session for the most part, with the FTSEurofirst 300 down by 0.10% to 1,486.88 and the DAX down by 0.40% to 10,907.50 during the forex session. US equity futures were also bleeding out, with the S&P 500 futures down by 0.185 to 2,091.75 and NASDAQ futures down by 0.24% to 4,682.50.

And due to their status as safe-haven currencies, the Greenback and the Japanese yen both got some lovin’ from forex traders, but the safe-haven Swissy was being shunned. There were no catalysts that could account for the Swissy’s weakness, however, so I’m pointing to the usual suspect – the Swiss National Bank and its mission to sneakily weaken the Swissy.

USD/JPY is up by 23 pips (+0.20%) to 120.85, USD/CHF is up by 45 pips (+0.46%) to 0.9903, USD/CAD is up by 30 pips (+0.23%) to 1.3113

EUR/JPY is down by 38 pips (-0.28%) to 132.61, CHF/JPY is down by 33 pips (-0.27%) to 122.01, GBP/JPY is down by 21 pips (-0.12%) to 185.93

As for other currencies of note, the Loonie was the only higher-yielding currency that was putting up a fight against the Greenback and the Japanese yen. Heck, it was even dishing out the pain against its other forex rivals. There were no economic reports or news events during the forex session, so the Loonie’s strength was most likely due to a surge in oil prices, with Brent crude oil up by 0.88% to $49.22 per barrel during the forex session.

EUR/CAD is down by 38 pips (-0.26%) to 1.4386, NZD/CAD is down by 30 pips (-0.34%) to 0.8799, GBP/CAD is down by 20 pips (-0.10%) to 2.0175

The forex calendar for the upcoming afternoon London/morning US session has a good mix of items and events lined up, so let’s get cracking.

Forex traders will get the first set of economic indicators at 3:00 pm GMT, with the readings for US factory orders (-0.9% expected, -1.7% previous) and the IBD’s US consumer economic optimism (47.4 expected, 47.3 previous) on tap. Do note that both indicators are expected to show some improvement, so expect some demand for the Greenback, especially if better-than-expected readings are registered.

We’ll then get a central banker bonus round at 7:00 pm GMT when ECB President Mario Draghi delivers a speech at the European Cultural Days event. We shouldn’t really expect a lot in terms of juicy updates, though, given the nature of the event. Still, it doesn’t hurt to keep an ear out.

Finally, we’ll get the last set of economic indicators way late into the US session at 9:45 pm GMT. This time, our focus will be on New Zealand’s labor market, with readings for the employment growth (0.4% expected 0.3% previous) and the jobless rate (6.0% expected, 5.9% previous). Do note that that employment growth is expected to, well, grow a bit, which is good for new Zealand and the Kiwi. but at the same time, the jobless rate is expected to tick a little higher, which is bad, so make sure to keep an eye on the Kiwi’s forex price action.

Oh, a dairy auction is currently underway and results should be out by 2:30 pm GMT (-3.1% previous), so keep an eye on that here since a positive reading may drive up demand for the Kiwi while another negative reading can put a squeeze on Kiwi bulls like last time. 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!