Article Highlights

  • Final European HICP ticks slightly lower: y/y 0.7% vs. 0.8% forecast; core y/y inline with forecast at 1.0%
  • Fear subsides after Crimea votes to join Russia
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It looks like risk-on sentiment has creeped back into the minds of forex traders this morning it appears the vote for Crimea to leave Ukraine will not create more tensions between the West and Russia.

Without any other major economic events or news, this seems to be enough to bring back demand for “risk currencies,” with what looks like the commodity dollars up pretty big against the other major currencies.  Comdolls against Yen pairs are the biggest movers on the session as traders price in potential dovish rhetoric from the Bank of Japan after such strong Yen gains over the past few weeks: AUD/JPY is up 89 pips (+.98%) to 92.37, NZD/JPY is up 84 pips (+.97%) to 87.27, and CAD/JPY is up 80 pips (+.88%) to 92.06.  The Russian Ruble is also up on the session: USD/RUB is up 28 pips (+0.79%) to 36.52.

Coming up in the afternoon London/morning U.S. session, we’ve got a cluster of U.S. events starting at 12:30 pm GMT including the Empire State Survey, TICS Flows, and industrial production to name a few.  All are slated to come in above previous reads (no more weather effect?), but since they are all tier 2 events, they’re not expected to move the markets big unless we get an outsized surprise.  Pay close attention to those events and the momentum we’re currently seeing in the comdolls.  Stay frosty!

See also:

Asian Session Recap

U.S. Session Recap

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