Article Highlights

  • German GFK Consumer Sentiment lower: 8.3 vs. 8.5 forecast, 8.6 previous
  • German Import Price Index m/m improves: -0.1% vs. -0.2% forecast, -0.4% previous
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The morning London session was relatively quiet with no major economic news, but there were a few moves of note among the yen and euro.

First, we got mixed data from Germany, and while the import price index data did come better-than-expected, it was still a negative read on the monthly number.  After rallying in Asia, the euro has taken a hit against the major currency since the early morning release of the data, with momentum still on the side of the sellers:

EUR/USD is down 20 pips (-0.20%) to 1.2729, EUR/GBP is down 6 pips (-0.8%) to .7806, EUR/AUD is down 28 pips (-0.19%) to 1.4478

The Japanese yen selloff continued in the morning London trade, sparked by weaker-than-expected inflation readings from Japan during the Asia session. Much like the euro, the yen’s weakness doesn’t seem to be slowing down with most yen pairs trading around session highs:

USD/JPY is up 40 pips (+0.37%) to 109.13, EUR/JPY is up 35 pips (+0.25%) to 138.97, and AUD/JPY is up 41 pips (+0.42%) to 95.94

The forex calendar for the Friday afternoon London/morning U.S. session has some major economic data points from the U.S. that will hopefully provide one or two opportunities before the week closes out.

At 1:30 pm GMT, we’ll get the final reads on the core PCE Price Index and GDP from the U.S.  The forecast is for the inflation to remain at previous estimates (core PCE at 2% q/q) but for the GDP number to be revised higher to 4.6% from 4.2%.  These numbers do have a high probability of spiking volatility, so I’d be cautious with dollar trades during this hour.

At 2:55 pm GMT, we’ll get the final read on the University of Michigan sentiment surveys, forecast to tick higher to 84.8 vs. 84.6 previous.  This is a mid-tier event that has be on the downtrend for the last few months.  Breaking that trend could provide a very short-term reaction from the forex markets, so once again, be aware of dollar positions and orders during this time. 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!