Article Highlights

  • U.K. CIPS/Markit Construction PMI better-than-expected: 64.6 vs. 65.1 forecast
  • European PPI numbers come inline but higher than previous reads.  m/m 0.2% vs. -0.1% previous; y/y -0.8% vs. -1.2%
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The morning London session was marked with a small bit of optimism in risk in currencies, at least when compared to the shellacking the Asian equities took! The Nikkei fell over 4% today while Japanese yen pairs were up; USD/JPY is up +0.34% on the session, holding the 101.00 handle, and GBP/JPY is up +0.41%, currently trading around 165.33.

The latter was helped by a surprise positive read from the U.K.’s construction PMI number.  Sterling rallied against the its major counterparts, bouncing back against the euro (EUR/GBP down -0.19% to .8278) and slightly up on the session against the Greenback to 1.6318.

And finally, commodity dollars are bouncing back today, lead by the Aussie who is still holding its gains after the RBA meeting earlier today.  The RBA refrained from a rate cut and implied that rates would stay stable for now, which is a big change from recent rhetoric of talking down the Aussie.  AUD/USD is currently consolidating around the .8900 handle, up +1.61% on the session; EUR/AUD is down -1.58% to test the 1.5200 handle.

For the rest of the session, we’ve got U.S. economic data in the form of the factory orders and the IBD consumer optimism survey numbers.  Both are expected to come in below their previous read,  which could add to the weak risk sentiment currently driving the markets.  We also have the Congressional Budget Office releasing the budget and economic outlook for the U.S. for 2014 and beyond.  Will we see the U.S. raise the debt limit? You’ll just have to stay tuned to find out!

See also:

Asia Session Recap

U.S. Session Recap

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