London Session Update – December 12, 2013

  • SNB reiterates pledge to defend franc peg, keeps policy unchanged
  • Euro zone industrial production disappoints with 1.1% decline
  • U.S. headline retail sales to show 0.6% increase
  • U.S. core retail sales expected to print 0.2% uptick
  • U.S. initial jobless claims to come in at 321K
  • BOC Governor Poloz set to testify

There was plenty of movement in today’s London session, as the euro gave up a bit of ground because of weaker than expected industrial production data while the pound made a strong bounce against the dollar when the U.K. leading index printed a 0.4% reading.

Although the SNB decided to keep policy unchanged, SNB head Jordan took the rate statement as an opportunity to reiterate their pledge to defend the franc peg. Jordan also remarked that the franc is “still high” and that inflation is likely to remain weak.

Up ahead, we have U.S. retail sales data set for release at 2:30 am GMT. Headline retail sales could show a 0.6% increase while core retail sales could print a 0.2% uptick. Given the recent streak in jobs gains, consumer spending might be in for an upside surprise and might provide support for the Greenback. Also due today is the initial jobless claims report and a speech by BOC Governor Poloz.

See also:

Asian Session Recap

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. 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.