London Session Forex Recap – Mar. 28, 2016

  • The U.K. and other major European markets on Easter Monday holiday today
  • No major news reports released during the morning London session

The major European markets were closed for the day due to the Easter Monday holiday, so volatility got sapped during today’s morning London session. There was some directional movement, however, and forex traders were likely turning to risk sentiment for direction.

Major Events/Reports:

Signs of risk-taking – European stock markets may have been closed for the day due to the holiday, but U.S. equity futures were open and they were in the green, with the S&P 500 futures up by 0.25% to 2,033.50 and Nasdaq futures up by 0.29% to 4,409.88 during the morning London session. The safe-haven gold was also kicked 0.32% lower to $1,219.60 per troy ounce during the session.

Market analysts attributed the moderate risk appetite to preemptive positioning ahead of mid-tier U.S. economic reports for later, although an event-filled forex calendar for the trading week, especially the Greenback, was likely a factor as well.

Tight trading conditions – Most European forex traders and other market players were away on Holiday today and there weren’t any major events during the morning London session, so forex price action was pretty tight.

Major Currency Movers:

NZD & AUD – Thanks to the risk-on sentiment, the Kiwi and the Aussie, which are both higher-yielding comdolls, were getting some buyers and grinding ever higher during the course of the morning London session, with the Kiwi being the stronger of the two given that AUD/NZD was down by 9 pips (-0.08%) to 1.1230 during the session.

The Loonie, which is another higher-yielding currency, had a more mixed performance, probably because short-term forex traders were taking delicious profits off the table after the Loonie showed signs of strength during the earlier Asian session.

NZD/USD was up by 10 pips (+0.15%) to 0.6703, NZD/CAD was up by 18 pips (+0.20%) to 0.8880, NZD/JPY was up by 9 pips (+0.11%) to 76.0

AUD/USD was up by 7 pips (+0.09%) to 0.7531, AUD/CAD was up by 14 pips (+0.14%) to 0.9976, AUD/CHF was up by 9 pips (+0.12%) to 0.7358

GBP – Aside from the Kiwi and the Aussie, the pound was also getting pushed higher. The pound even managed edge out a win against the Aussie, but lost decisively to the Kiwi. There weren’t any catalysts for the pound’s strength during the morning London session, though.

GBP/USD was up by 21 pips (+0.15%) to 1.4165, GBP/JPY was up by 19 pips (+0.12%) to 160.80, GBP/CAD was up by 41 pips (+0.22%) to 1.8767

Watch Out For:

  • 1:30 pm GMT: U.S. Core PCE price index (0.2% expected, 0.3% previous)
  • 1:30 pm GMT: U.S. personal spending (0.1% expected, 0.5% previous)
  • 1:30 pm GMT: U.S. personal income (0.1% expected, 0.5% previous)
  • 1:30 pm GMT: U.S. advanced goods trade balance (-$62.0B expected, -$62.2B previous)
  • 3:00 pm GMT: U.S. pending home sales (1.5% expected, -2.5% previous)

See also:

Asian Session Forex Recap

U.S. Session Forex 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!