London Session Recap – December 20, 2013

  • UK current account deficit at its highest since 1989
  • UK Q3 2013 GDP as expected but previous readings revised higher
  • S&P strips EU’s AAA credit rating
  • Canadian core CPI to show 0.1% uptick, headline figure to print 0.2% increase
  • Canadian core retail sales expected to stay flat, headline retail sales might see 0.3% rise
  • U.S. final GDP due, no revisions expected

What a bummer! Price action of the major currencies were surprisingly tame considering the bombshells that we saw from today’s economic reports. For one thing, credit ratings agency S&P stripped the EU of its AAA ratings, citing overall credit weakness and less cohesive stance on budget issues. EUR/USD barely showed reaction though, as it dropped by less than 20 pips and quickly went back up to its Asian session levels.

Meanwhile, the U.K. printed its weakest its widest trade deficit figure since 1989. Fortunately, the upward revisions to the previous GDP readings made up for the bad vibes. GBP/USD spiked to the 1.6480 level before it dropped and stayed within the 1.6450 area.

Before the trading week comes to a close, we’ll get a couple of major reports from Canada, namely the CPI and retail sales data. Core CPI is projected to show a 0.1% uptick while the headline figure might print a 0.2% increase. Headline retail sales could come in at 0.3% while core retail sales could stay flat.

As for the U.S. economy, only the final GDP reading is due and no revisions are expected. However, if we do see any upward revisions from the previous 3.6% reading, more dollar rallies could follow. Watch out for that release at 1:30 pm GMT!

See also:

Asian Session Recap

U.S. Session Recap

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