- German PPI m/m at -0.3% vs. 0.0%; y/y -0.9% vs. -0.7% forecast
Not much for forex traders to work with in today’s morning London session with a near empty economic calendar; German PPI data came before the the London with little affect on currencies.
Price action remained tight until the mid-morning London session when traders started buying up euros and selling pounds, pushing the two currencies in opposing directions against the majors. There doesn’t seem to be a direct catalyst, and could be the result of the light, pre-holiday liquidity.
GBP/USD is off its highs, but still up 17 pips (+0.11%) to 1.6810 on yesterday’s positive U.K. unemployment data. And across the river, the euro is seeing some nice gains against both sterling and the Greenback:
EUR/USD is up 44 pips (+0.32%) to 1.3856, and EUR/GBP is up 18 pips (+0.22%) to .8241.
And as we saw through today’s Asia session, comdolls continue to grind lower (especially against the Swissy), a move sparked by a declining GDP read out of China yesterday:
AUD/CHF is down 53 pips (-0.64%) to .8205, and NZD/CHF is down 38 pips (-0.51%) to .8204, CAD/CHF is down 33 pips (-0.42%) to .7969
Coming up in the Thursday afternoon London session, we’ve got Initial Claims data from the U.S. at 1:30 pm GMT. Expectations are for a 315K read vs. 300K previous. At the same time as the U.S. data, we’ll get CPI data from Canada. The forecast is for the yearly reads to tick higher (headline 1.4% vs. 1.1% previous) and the monthly to tick lower (headline 0.4% vs. 0.8% previous). Inflation data is typically a tier one type event so be on the look out for volatility to rise for the Loonie.
And at 3:00 pm GMT, we’ll get the Philly Fed Survey, expected to tick higher at 10 vs. 9 previous. This report takes a look at the manufacturing conditions in the Philadelphia Federal Reserve district, and its an event with high potential of increasing volatility. Stay on your toes with your U.S. dollar trades around this time.
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!