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European and U.K. forex traders are back from the long weekend, sparking some sorely missed volatility for the morning London session. Asia was in risk-off mode due to the continuing tensions in Ukraine,  giving the Japanese Yen a boost early in the week.  But it was quickly reversed at the London open thanks to positive sentiment from European traders, pushing most Yen pairs into the green on the session.

USD/JPY is trading near the session open, currently at 102.54, EUR/JPY is up 19 pips (+0.14%) to 141.69, and GBP/JPY is up 28 pips (+0.17%) to 172.52 after seeing lows at 172.00.

The British Pound was also a big mover from the London open as currency traders priced in a positive outlook for the U.K., in which they’re expecting to see in next week’s U.K. preliminary GDP report. Despite a slight pullback from session highs, sterling is mostly up on the session:

GBP/USD is up 34 pips (+0.21%) to 1.6821, GBP/CAD is up 53 pips (+0.29%) to 1.8533, and EUR/GBP is near break even, around .8211, after nearly testing .8200 earlier.

The U.S. session will be opening soon, with a very light calendar for currency traders to make plays off of.  From Canada, we’ll see the monthly wholesale sales data at 1:30 pm GMT, with a forecast of 0.7% vs. 0.8% previous.

Afterwards, we’ll see housing data from the U.S. in the form of FHFA House Price index at 2:00 pm GMT and the existing home sales data at 3:00 pm GMT.  Both are expected to come in slightly inline or below their previous reads, and since they are middle tier events, they do have the potential to spark volatility if the actual reads are way off of the previous and/or forecasts.

Also at 3:00 pm GMT we’ll get the Richmond manufacturing index data, expected to improve to 0 from the -7 previous read.  This is a low tier event, but has been known to spark volatility.  Stay frosty traders!

See also:

Asian Session Recap

U.S. Session Recap

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