- U.K. Rightmove HPI up by 3.0% in June, -0.1% previous
- Swiss PPI and retail sales reports due
Forex pairs seem to be treading extra carefully ahead of a jam-packed trading week. Could this be the calm before the storm? USD/JPY is up 11 pips (+0.10%), AUD/USD is down 8 pips (-0.09%), and NZD/USD is lower by 9 pips (-0.14%). Some pairs actually showed gaps over the weekend, suggesting that traders are starting to brace themselves for strong market moves ahead.
Euro pairs gapped lower from Friday’s close, thanks to reports showing that the weekend discussions between Greece and its creditors still failed to bear fruit. EUR/USD is testing support at 1.1200 and is down 59 pips (-0.53%), EUR/JPY is lower by 61 pips (-0.44%), and EUR/GBP is down 26 pips (-0.36) at the .7200 handle.
There have been no major economic reports released in the past few hours, with the U.K. Rightmove HPI as the only data point printed. The report showed a 3.0% increase in house prices for the current month, an impressive rebound from the previous 0.1% decline. Despite that, GBP/USD is lower by 18 pips (-0.11%) while GBP/JPY is down 19 pips (-0.1%).
Up ahead, the forex calendar suggests that the Swiss franc might grab the spotlight in the London trading session with its PPI and retail sales releases. Swiss producer prices are expected to show a 0.1% rebound in May after sliding 2.1% in the previous month while retail sales could climb from an annualized -2.8% reading to -2.1% in April. Stronger than expected data could provide support for the Swissy, which seems to be the safe-haven alternative among the European currencies.
Also lined up for today is a speech by German central bank head Weidmann who might have a few remarks on the Greek debt talks and how it could affect finances in the region. RBA Assistant Governor Kent also has a testimony lined up and he could have some hints on the central bank’s monetary policy bias that might give Aussie pairs a directional bias.
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. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!