- Swiss Unemployment Rate comes inline with 3.2% forecast/previous
- U.K. Halifax House Price Index m/m improves to 0.6% vs. 0.2% forecast, 01.% previous
The Halifax house price index data was probably the only data of note, and despite a better-than-expected read on house pricing in the U.K., Sterling’s initial reaction was a mild, negative one. This turned into an opportunity for British pound bulls to hop on at better prices. GBP/USD initially dropped to 1.6040 after the data, but was quickly faded and pushed as high as 1.6090 before settling back lower.
With no other major data points or news catalysts, price action amongst most forex pairs was sideways, but we did see a steady grind lower in the Aussie; possibly as traders take profits from yesterday’s rally ahead of the upcoming Australian jobs data at 1:30 am GMT, Thursday morning. Aussie pairs are lower on the session, lead by AUD/USD which is down 41 pips (-0.47%) to .8775.
The forex calendar for the Wednesday afternoon London/morning U.S. trading session is light once again with only Canadian housing starts data, just released at 1:15 pm GMT, and the release of the minutes from the most recent FOMC meeting at 7:00 pm GMT.
The Canadian housing starts number came in at 197.3K starts vs. 198K forecast and 196.3K in the previous month. The initial reaction seems to be mute and mixed at this time, but keep an eye on the Loonie for potential follow through on the session.
With the focus of many forex traders still on the debate of when the Fed will raise interest rates, the FOMC meeting minutes will most likely be closely watched and reacted to, especially if we see any new insights on when we’ll get a rate hike (spring or summer of 2015?). The U.S. dollar has given up some of its third quarter gains over the last few days, so whatever the minutes may reveal, volatility should pick up to give currency traders a few potential short-term opportunities.
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!