- German Import Prices m/m: -0.6% vs. -0.1% forecast; -3.3% y/y vs. -2.8% forecast
Sterling was the main mover of the session on a combination of positive flows ahead of tomorrow’s preliminary U.K. GDP read (expected to tick higher) and merger and acquisition (M&A) news between Pfizer and U.K. drugmaker AstraZeneca for $100B. Combined, it was a positive boost for the British Pound, which is up against most majors on the session:
GBP/USD is up 47 pips (+0.28%) to 1.6843, GBP/JPY is up 77 pips (+0.45%) to 172.38, and GBP/NZD is probably the biggest mover of the day, up 135 pips (+0.69%) to 1.9708
The Japanese Yen is also a mover on the session, reversing its gains from Friday’s risk-off moves on Ukraine tensions going into the weekend. M&A news and the avoidance of full out war may be what is prompting a move back to risk assets to start the week, which is typically not-so-good for the Yen. Also, reports that Japanese insurers are looking overseas for yield is causing capital flows out of Japan, and adding to yen pressure:
USD/JPY is up 15 pips (+0.13%) to 102.33, EUR/JPY is up 49 pips (+0.35%) to 141.83, and AUD/JPY is up 23 pips (+0.25%) to 94.97
The first London/U.S. session of the week is pretty light on data with only U.S. pending home sales to be released at 3:00 pm GMT. Expectations for the monthly read is for a 0.7% rise vs. -0.8% previous. This data has been in a downtrend, so a positive read could surprise traders and ignite swift moves in currencies, mainly the Greenback.
We also have ECB President Mario Draghi giving a speech at the joint conference of the German government’s coalition party groups at 3:30 pm GMT. With the ECB possibly considering new monetary policy measures, any sort of hints from Draghi on the ECB’s outlook could spark big short-term volatility for the currency markets. Stay frosty friends!
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!