London Session Recap: EUR & GBP Find Buyers, USD Under Selling Pressure

Not much in terms of events or news during today’s morning London session. Still, the euro and the pound did find a lot of buyers. The Greenback, meanwhile, was clearly feeling some bearish pressure.

  • German PPI m/m: 0.4% vs. 0.2% expected, 0.0% previous
  • Euro Zone current account: €34.1B vs. €32.3B expected, €37.8B previous
  • CBI’s U.K. industrial order expectations: 9 index points vs. steady at 4 expected

Major Events/Reports

OPEC rumors

According to a Reuters report that cited unnamed OPEC sources, an “OPEC panel reviewing scenarios for the oil producer group’s meeting next week is looking at the option of deepening and extending a deal to reduce crude output.”

One of these unnamed sources supposedly said that “a deeper cut in output was an option.” However, another unnamed source said that “We have not agreed on final scenarios.”

Commodities rally

Commodities staged a broad-based recovery after getting slapped lower yesterday.

Oil benchmarks outperformed.

  • U.S. WTI crude oil was up by 1.26% to $49.97 per barrel
  • Brent crude oil was up by 1.26% to $53.17 per barrel

Base metals were mostly in positive territory.

  • Copper was up by 2.02% to $2.495 per pound
  • Nickel was up by 0.60% to $9,222.50 per dry metric ton

Precious metals were more reluctant, but still scored wins.

  • Gold was up by 0.02% to $1,252.99 per troy ounce
  • Silver was up by 0.88% to $16.816 per troy ounce

Most market analysts pointed mainly to Greenback weakness, which made globally-traded commodities relatively cheaper. And for reference, the U.S. dollar index was down by 0.54% to 97.24.

Other than that, market analysts also say oil likely got a boost due to the rumors from Reuters that I mentioned earlier.

Some risk-taking to end the week

After getting battered all week long, European equity indices finally showed signs of green shoots.

The pan-European FTSEurofirst 300 was up by 0.35% to 1,536.02

  • Germany’s DAX was up by 0.15% to 12,609.50
  • The blue-chip Euro Stoxx 50 was up by 0.45% to 3,578.50

The moderate risk-on vibes also gave U.S. equity futures a lift.

  • S&P 500 futures were up by 0.24% to 2,369.25
  • Nasdaq futures were up by 0.27% to 5,645.88

Other than fading worries over the political drama in Washington, market analysts couldn’t really pinpoint a reason for the returning risk-on vibes. Bargain-buying and profit-taking by shorts are possible reasons, though.

Major Market Mover(s):

GBP & EUR

Both the pound and the euro were getting some love during today’s morning London session. There were no apparent catalysts for the two currencies, though.

Well, there were some low-tier reports for the two currencies. And while the reports were positive, both currencies actually began showing signs of demand during the late Asian session, which is before the reports were released, so the reports are not the likely catalysts.

EUR/USD was up by 64 pips (+0.58%) to 1.1182, EUR/AUD was up by 61 pips (+0.42%) to 1.5026, EUR/NZD was up by 98 pips (+0.61%) to 1.6224

GBP/USD was up by 58 pips (+0.45%) to 1.3010, GBP/AUD was up by 50 pips (+0.29%) to 1.7490, GBP/NZD was up by 93 pips (+0.49%) to 1.8884

USD

After some respite, the Greenback began showing signs of selling pressure again during today’s session. In fact, the Greenback was the worst-performing currency of the session. No clear reason why, though, and there wasn’t really any fresh Trump-related news.

USD/JPY was down by 14 pips (-0.13%) to 111.25, USD/CHF was down by 37 pips (-0.38%) to 0.9764, USD/CAD was down by 22 pips (-0.17%) to 1.3570

Watch Out For:

  • 12:30 pm GMT: Canada’s headline monthly CPI (0.5% expected, 0.2% previous)
  • 12:30 pm GMT: Headline (0.4% expected, -0.6% previous) and core (0.2% expected, -0.1% previous) readings for Canadian retail sales
  • 2:00 pm GMT: Euro Zone consumer confidence index (-3 expected, -4 previous)