Article Highlights

  • U.K. Trade Balance (Non-EU): -3.02B GBP vs. -3.50B GBP forecast
  • German Industrial Production m/m: 1.9% vs. 1.5% forecast
  • European Economic sentiment: 100 vs. 99.1 forecast
  • The Bank of England’s Monetary Policy Committee (MPC) maintains interest rate at 0.50% & asset purchases at 375B GBP
  • European Central Bank leaves interest rate at 0.25% as expected
  • U.S. Initial Claims: 330K vs. 335K forecast
  • Canadian Building Permits: -6.7% vs. -2.7% forecast; Housing Starts: 189.7K vs. 190.0K forecast
Partner Center Find a Broker

Quiet price action in today’s morning London session, but we did get quite a few economic data points from Europe.  German industrial production was the most notable among the tier 2 events on today’s forex calendar, which came out better-than-expected.  This coupled with positive economic sentiment provided momentary support in the euro, but no major moves as traders stay on the sidelines ahead of this morning’s monetary policy statements from the ECB and BOE.

Both the Bank of England and European Central Bank made no changes to their monetary policies as expected. The initial reactions were muted in both from their respective major currencies, but both have put up a small gain against the U.S. dollar in the last hour.  For the euro, the bigger event may be the ECB press conference, which just began at 1:30pm GMT.  Comments on the European economy and inflation conditions may spark volatility for the euro.

The morning U.S. session is starting out on a busy note with data from both the U.S. and Canada.  U.S. weekly jobless claims came out today better-than-expect, sparking a brief selloff to the Greenback, which seems to have quickly faded.  Traders may take this as another cue that tomorrow’s NFP data will be positive, and price it in ahead of time.

No major economic data points are scheduled to be released for the rest of the U.S. session, so the ECB and BOE decisions (and ECB press conference) may continue to be drivers in price action, as well as risk sentiment from U.S. equity markets and expectations for the U.S. data tomorrow morning.

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.

 Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!