London Session Recap – November 27, 2013

  • German GfK consumer sentiment highest in SIX years
  • Merkel’s government strikes a deal with SPD
  • UK’s GDP unchanged but underlying factors supports GBP
  • UK CBI realized sales disappoint but ignored by GBP traders

Bet you didn’t see that coming! The European currencies staged an impressive rally on the back of better-than-expected reports while the comdolls lost more pips against the dollar.

The euro bulls hustled some muscle in early London trading as Germany’s Angela Merkel made deals with the Social Democratic Party (SPD) of Germany that promotes steady governing coalition for the biggest economy in the euro zone. Of course, it also didn’t hurt that Germany’s consumer confidence report came in at its highest level in SIX years.

The pound bulls joined the party as the U.K.’s GDP numbers came out. While the headline numbers didn’t show changes, traders had concentrated on the improvement on the index of services. GBP/USD, along with EUR/USD, triggered stops above major psychological numbers and triggered intraday rallies. Unfortunately, AUD, CAD, and NZD stayed in Loserville as comdoll investors continued to trade the weak Asian markets performance.

Will the U.S. traders pick up on the risk appetite or will profit-taking kick in? The U.S. initial jobless claims and core durable goods orders are scheduled at 2:30 pm GMT, followed closely by the Chicago PMI at 3:45 pm GMT. Last but not the least, the CB leading index is up at 4:00 pm GMT.

See also:

Asian Session Recap

U.S. Session Recap

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