- Saudi Arabia launched bombing raids on Yemen
- WTI crude oil price surged past $50/barrel level
- German GfK consumer climate index and U.K. retail sales data due
With no major reports released in the past few hours, forex traders were able to keep close tabs on Saudi Arabia’s bombing raids on Yemen and its impact on oil prices. WTI crude has surged past the $50/barrel level and is up 4.14% as of this writing, as the ongoing conflict could dampen oil production and supply.
While this news has taken its toll on risk sentiment, the oil-related Canadian dollar managed to escape with a few wins. USD/CAD is down 40 pips (-0.32%) and CAD/JPY is holding on to the 95.50 handle (0.00%). Other higher-yielding currencies such as the Aussie and Kiwi gave back their recent gains, with AUD/USD down 24 pips (-0.29%) and NZD/USD lower by 18 pips (-0.21%).
European currencies are sitting comfortably in their ranges, as forex market participants in that region still seem to be stunned by the news Zayn Malik has left One Direction for good. Kidding aside, GBP/USD is up 10 pips (+0.08%), EUR/USD is up 17 pips (+0.15%), and USD/CHF is flat at 0.9600.
London session traders might need to pay closer attention to the forex market in the next few hours, as a couple of potential catalysts are lined up. Germany is set to print its GfK consumer climate report at 8:00 am GMT and possibly show an improvement from 9.7 to 9.8 this month. Stronger than expected results could reinforce the view that the euro zone is seeing a sustained recovery, which might be enough to boost the shared currency.
Meanwhile, the U.K. retail sales report could show a 0.4% rebound for February, which could provide a bit of support for the British currency. However, weaker than expected data could undermine BOE Governor Carney’s belief that the drop in price levels would encourage consumer spending. If so, the pound could be in for more losses as market watchers might not count on tightening moves from the BOE anytime soon.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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