Article Highlights

  • French Current Account weaker-than-expected: -7.4B EUR vs.  -3.3B EUR previous
  • German ZEW data disappoints – Economic Sentiment at 8.6 vs. 17 forecast, 27.1 previous; Current Conditions at 44.3 vs. 54 forecast, 61.8 previous
  • European ZEW also much weaker: 23.7 vs. 48.1 previous
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The big headlines from the morning London session were the ugly sentiment numbers from Europe, waking up the bears once again.

The ZEW survey showed us that sentiment among European investors and businesses is much worse than the low expectations the market already had going into today’s number.  This number reiterates the dire conditions in Germany and the rest of Europe already spoken about in Forex Gump’s, “4 Signs the ECB Might Ease Again” article.  The euro took a beating on the news, without signs of stabilization yet:

EUR/USD is down 40 pips (-0.30%) to 1.3342, EUR/JPY is down 19 pips (-0.14%) to 136.44, and EUR/GBP is down 17 pips (-0.21%) to .7954

The forex calendar for the afternoon U.K. morning/U.S. session is light and won’t see action until near the end of the London session.

At 3:00 pm GMT, we’ll get the JOLTS job openings data from the BLS to give us a fresh read on employment in the U.S.  The forecast is for a read of 4.6M job openings in June, lower than the 4.635M in May.  This number has been on the rise since the beginning of 2014, where it started below the 4M level. This is a mid-tier event that could spark volatility, so Dollar traders should stay on your toes during this event.

And at 7:00 pm GMT, we’ll get the U.S. monthly budget statement, with an expectation the Treasury will report a $96B deficit, far below the $70.5B surplus in the previous month but inline with the trend of improving budget conditions over the course of the year. This is also a mid-tier event, but may not garner as much reaction since it’s coming in the afternoon U.S. session.  With that said, it’s still one to be aware of incase we do get a large surprise read. Stay Frosty!

See also:

Asia Session Recap

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together. In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.  Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!