Article Highlights

  • U.K. Nationwide House Prices: 0.3% vs. 0.3% forecast, 0.2% previous
  • German Unemployment Rate: 6.5% vs. 6.5% forecast, 6.6% previous
  • German Unemployment Change: -9K vs. -10K forecast, -25K previous
  • European M3 Money Supply y/y: 3.6% vs. 3.5% forecast, 3.1% previous
  • European Economic Sentiment: 101.2 vs. 101.6 forecast, 100.6 previous
  • European Industrial Sentiment: -5 vs. -4.5 forecast, -5.2 previous
  • U.K. CBI Distributive Trades: 39% vs. 32% forecast, 61% previous
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The Aussie and Kiwi continued to slide while the euro saw buying support in the morning London forex trading session.

Taking cues from recent dovish statements from both the Bank of Canada and today’s Reserve Bank of New Zealand meeting, forex traders went bearish on the Aussie and Kiwi in anticipation of more dovishness (and possibly a rate cut) from the Reserve Bank of Australia meeting next week. The moves in both comdolls look to still be in full bear mode as we head into the U.S. trading session:

AUD/USD is down 109 pips (-1.39%) to .7777, NZD/USD is down 46 pips (-0.61%) to .7270, and NZD/CAD is down 52 pips (-0.56%) to .9118

Thanks to a cornucopia of European data, the euro is also on the move, but to the upside, likely on the positive German unemployment data and tick higher in broad European sentiment.

EUR/USD is up 29 pips (+0.26%) to 1.1313, EUR/GBP is up 27 pips (+0.38%) to .7479, and EUR/CHF is up 168 pips (+1.66%) to 1.0377

The forex calendar for the Thursday afternoon London/morning U.S. session is looking pretty light on potential catalysts with mid-tier U.S. economic data in the lineup.

At 1:30 pm GMT, we’ll get the weekly U.S. initial claims for a fresh read on the U.S. employment sector, forecasted to come in at 300K vs. 307K in the previous week.  And at 3:00 pm GMT, we’ll see U.S. pending home sales data, forecasted to come in at 0.5% vs. 0.8% previous, potentially showing a slight dip in demand for U.S. homes. Again, both are mid-tier events that usually don’t spark a big reaction, and if they don’t then forex traders may continue to focus on the fresh sentiment of weak comdolls going ahead of the RBA meeting next week, as well as yesterday’s FOMC statement to stay patient on interest rates. 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!