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  • ECB President Mario Draghi set to speak to European legislators at 2:00 pm GMT
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The economic calendar for Europe and the U.K. was barren, so forex traders in the morning London session took its cues from Asia session sentiment.  The most notable moves do come from the Australian Dollar, extending its decline this morning on continued weak sentiment on China and the decrease in demand for commodities.

Commodity prices pressures are also due to a strengthening U.S. Dollar, on the back of the FOMC marching towards the end of quantitative easing and the possibility of raising rates in 2015. The comdolls are taking the biggest hits across the board, and downward momentum has especially picked up for the Aussie:

AUD/USD is down 50 pips (-0.56%) to .8870, AUD/JPY is down 52 pips (-0.54%) to 96.72, and GBP/AUD is the biggest mover, up 171 pips (+0.94%) to 1.8414

We’re also see action in the British Pound, continuing its bounce higher off of the vote to keep Scotland as a part of the U.K. last week.  Pound pairs moved up throughout the Asia session, but seem to be losing steam against the non-comdoll currencies here in the London session.  Regardless, we’re still seeing nice gains for sterling heading into U.S. trade.

GBP/USD is up 47 pips (+0.29%) to 1.6330, GBP/JPY is up 53 pips (+0.31%) to 178.09, and GBP/CAD is up 129 pips (+0.72%) to 1.7968

The forex calendar for the first afternoon London/morning U.S. session is also lacking economic data releases, but there an event with major catalyst potential.

At 2:00 pm GMT, ECB President Mario Draghi will speak on monetary policy to the European Parliament’s Economic and Monetary committee.  This will be closely watched, especially after a weak results from the initiation of targeted Long-Term Refinancing Operations last week.  Draghi’s speeches do tend to spark volatility in the forex markets, so it’s a good idea to be on your toes at this time. Stay frosty!

See also:

Asia Session Recap

U.S. Session Recap

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