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It was mostly quiet during the morning London session as news and economic data points were no where to be seen from Europe and the U.K., but we did get movement and mixed price action from the Land Down Under.

The big movers on the session were Australian Dollar pairs after reports that showed that Australian companies are planning to spend more than expected in the next fiscal year. Despite a decline in spend quarter over quarter, forex traders took this positively during the London trade, pushing the Aussie higher on the session:

AUD/USD is up 63 pips (+0.69%) to test the .9300 area, EUR/AUD is down 68 pips (-0.47%) to 1.4639, and the big mover of the day so far is AUD/NZD, up 79 pips (+0.73%) to 1.0938

For the Thursday afternoon London trading session, we’ll most likely see a bump up in volatility thanks to Canadian and U.S. data points coming up in the forex calendar.

At 1:30 pm GMT, we’ll see lower tier economic reports in the form of U.S. initial claims and Canadian current account data.  Both are forecasted to come in better than previous reads, but it may not matter as we’ve got tier one data released at the same time in the form of U.S. GDP data.

This U.S. GDP number is the second read of the first quarter data, which typically means the reaction may not be as big as the first read unless we see a change from the preliminary numbers.  The word on the street is that we may see the annualized number dip to -0.5% vs. 0.1%, so anything outside of those numbers could spark volatility in these thin trading conditions.

At 3:00 pm GMT,  we’ll get the U.S. pending home sales data with expectations of a 1% increase of sales vs. the 3.4% previous read.

Besides economic data, we’re seeing both Asia and European equities down for the Thursday session, so look out for risk sentiment to be in favor of safe havens, at least until we get through U.S. economic data. Stay frosty!

See also:

Asian Session Recap

U.S. Session Recap

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