- Swiss Retail Sales y/y: 3.4% vs. -0.5% previous
- U.K. CB Leading Index m/m: 0.6% vs. 0.5% previous
It’s was another slow start to the week for the morning London session, but there were a few nuggets of volatility for forex traders to nibble on.
The euro moved lower to start the week, and without direct catalysts, it could be on sentiment that the ECB may ease again and/or that this week’s European GDP numbers may not be up to snuff. The Euro is down against most majors, mostly against the Canadian Dollar which is having a strong London trade (also without a direct catalyst):
EUR/USD is down 17 pips (-0.13%) to maintain below 1.3400, EUR/GBP is down 12 pips (-0.16%) to .7978, and EUR/CAD is down 32 pips (-0.22%) to 1.4679
Loonie bullishness took off during the European session, and without any news or economic news to support the move, it could be Loonie bears lightening up on short positions after a weak Jobs report last Friday sparked a big selloff in CAD, or expectations that we’ll see a positive read on the Canadian housing starts later in the session. What ever the case may be, the Loonie is the only currency to show consistent directional moves across the board, and the big winner on the session. It’s especially up against safe havens as geopolitical risks seems to have lightened up since Friday:
USD/CAD is down 10 pips (-0.9%) to 1.0960, CAD/JPY is up 23 pips (+0.25%) to hold above 93.00, and CAD/CHF is up 20 pips (+0.25%) to .8263
The afternoon U.K.morning/U.S. session is starting off with another nearly empty forex calendar, with only Canadian Housing Starts scheduled for release at 1:30 pm GMT. The forecast for the mid-tier data point is for 193K new starts vs. 198.3K previous. This is a number that has been beating expectations since May, which may be the reason we’re seeing Loonie bullishness at the moment. So, look for a short-term increase in volatility at the release, depending on the number of course.
With a lack of economic data, currencies will most likely take cues from broad risk sentiment, which seems to be dictated by the constant stream of geopolitical news and equity market earnings reports as of late. Stay Frosty!
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