Article Highlights

  • U.K. Claimant Count Change: -34.6K vs. 25K forecast and -33.9 previous
  • U.K. ILO Unemployment Rate inline with previous and expectations at 7.2%
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The main events for the London session was U.K. unemployment data and MPC minutes, but Sterling wasn’t the only focus for forex traders on the session.

Forex Gump wrote a quick review of today’s U.K. events, but in short, the MPC meeting minutes didn’t provide any new insight to how the the BOE will move forward.  This means that the British pound rallied across the board thanks to a very positive surprise from the claimant counts change number (a decrease in new unemployment claims instead of an increase as expected).  It even looks like currency traders were pricing this in ahead of time as the pound started climbing into and through the event to its current levels:

GBP/USD is up 46 pips (+0.28%) to 1.6637, GBP/JPY is up 73 pips (+0.44%) to 168.98, and EUR/GBP is down 27 pips (-0.33%) to .8367.

The Canadian dollar is also moving big time on the session as it moved back into dive mode after a quick breather during the Asia session.  Forex traders renewed their bearishness on the Loonie after BOC Governor Poloz comments that an interest rate cut is not out of the question.

USD/CAD is up 41 pips (+0.37%) to 1.1175, CAD/JPY is down 17 pips (-0.19%) to 90.86, and EUR/CAD is up 49 pips (+0.32%) to 1.5560.

The afternoon London/morning U.S. session is relatively light on data with only U.S. Current Account (-$88B forecast) and Canadian Wholesale Sales (0.8% forecast) data in the line up.  Unless we get some outsized surprises, the market will most likely remain calm ahead of the big event of the day: the FOMC monetary policy decision and press conference at 6:00 pm GMT.  Forex traders will be on the lookout for comments on the Taper schedule, as well as any hints of forward guidance for future rate hikes.

Geopolitics and major market events for the day fellow traders, so remember to trade safe and stay frosty!

See also:

Asian Session Recap

U.S. Session Recap

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