- European Trade Balance (nsa): 17.1B EUR vs. 16.0B EUR, 14.2B EUR previous
With a lack of new news or economic data releases, most of the major and minor currency pairs stayed with 20 – 30 pip ranges in the morning London session. Yup, it was a real snoozer, but we did see movement from the euro after the European trade balance data. There was a bearish reaction to the news, but it was only about a 20 pip drop in the EUR/USD pair, highlighting the quietness of the session.
Hopefully for forex traders, volatility in the afternoon London session/morning U.S. session will pick up with the help of tier two economic data points from the U.S.
At 1:30 pm GMT, we’ll get U.S. housing data in the form of the housing starts and building permits numbers. Both are expected to tick slightly above their previous reads. And at 2:55 pm GMT, we’ll get the preliminary University of Michigan Sentiment index number. The forecast is for 84.5 vs. 84.1 previous.
Finally, risk sentiment has played a big role in currency price action over the past few days, so pay attention to the equity markets for cues on directional bias, especially for sentiment sensitive currencies like the Japanese Yen, Swiss Franc, and U.S. Dollar. Stay frosty!
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!