- German Factory Orders m/m: -1.7% vs. -1.1% forecast, 3.4% previous
- German Factory Orders y/y: 5.5% vs. 6.0% forecast, 6.6% previous
- U.S. Banks on Holiday for Independence Day
Despite a light economic calendar, forex traders got a little bit of action from the euro thanks to the weaker-than-expected factory orders number. The big drop in the monthly read definitely isn’t any help to euro bulls who haven’t had anything to smile about since yesterday’s ECB monetary policy meeting. The euro resumed its selloff not too long after the London session open:
EUR/USD is down 21 pips (-0.15%) to 1.3587, EUR/JPY is down 39 pips (-0.29%) to 138.67, and EUR/AUD is down 30 pips (-0.21%) to 1.4525
I should also mention that the Aussie and Loonie have found a bid during the European session:
AUD/NZD is up 28 pips (+0.27%) to 1.0701, CAD/CHF is up 20 pips (+0.24%) to .8412, and AUD/CHF is up 20 pips (+0.25%) to .8366
No direct catalyst for their strength, and it’s something that you should definitely be aware of in case you’re looking for some possible momentum plays for the rest of the session.
I say that because the rest of the Friday session will most likely be a quiet one with the U.S. on holiday for Independence day. For those forex traders left to play currencies, they may want to focus on the Euro, Aussie and Loonie incase there is any follow through or reversal of this morning’s moves. Also, because of the lightened liquidity, if we do see moves, they could be quick in these thin markets. Stay frosty!
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