- French Industrial Production m/m: -0.3% vs. 0.2% forecast; Italian Industrial Production -0.9% vs. 0.0% forecast
- Sentix Investor Confidence better-than-expected: 13.3 vs. 10.3
The economic data release schedule for the Monday morning London session was pretty light, but what we got managed to create a little bit of volatility and risk-off moves.
Both the French and Italian industrial production numbers were released this morning, and it wasn’t a good read for either. Combined with the weak data from Japan this morning (most notably the weak current account number at -0.64T JPY), traders are starting to take risk a bit off of the table, benefiting the Japanese yen and U.S. dollar against most of the majors. EUR/JPY is down 25 pips (-0.18%) on the session to 139.22, and EUR/USD is slightly up on the day 3 pips (+0.03%) at 1.3635.
For the rest of the trading session, we have economic data from Canada on tap in the form of housing starts (8:15 am ET); the expectation is that we’ll see 185K starts versus the 187.5K pervious read. The Loonie is slightly down against the Greenback ahead of the event with USD/CAD currently trading up 6 pips (+0.11%) on the session to 1.1037, mainly on risk sentiment flows.
With the forex calendar empty after the Canadian data, risk sentiment will most likely be the drivers of price action to finish off the Monday trading session. Pay attention to the equity, gold and bond markets. Also remember that the new Fed Chairwoman, Janet Yellen, will give her first monetary policy report to the U.S. Congress starting Tuesday, which may keep the markets subdued until the Q&A session after her prepared statement.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!