- French Current Account: -1.9B EUR vs. 0.3B EUR previous
After drifting higher during the Asia session, possibly on the better-than-expected Australian home loans and Westpac consumer sentiment data, the Aussie fell against the majors in the morning London session, seemingly without a direct catalyst. It could be position reduction ahead of the upcoming Australian jobs data (forecast for weaker data) or a broad reduction in risk, but whatever the case may be the Aussie is one of the only directional movers in a very slow morning in the forex markets:
AUD/USD is down 27 pips (-0.36%) to .7740, EUR/AUD is up 39 pips (+0.27%) to 1.4607, and AUD/NZD is down 33 pips (-0.32%) to 1.0459
The British pound is the other directional mover on the morning, also without a direct catalyst for its strength. Whether it’s a move into Sterling on a potential change in government control to the Labour and Liberal Democrats in the U.K., or an outlook that economic growth will accelerate with weak oil prices, we don’t know. But what we can see is that the pound is the big market mover among the sleepy currency market, breaking out of the Asia consolidation with some nice volatility:
GBP/USD is up 43 pips (+0.29%) to 1.5296, GBP/JPY is up 100 pips (+0.55%) to 183.15, and the big mover of the session thanks to Aussie weakness, GBP/AUD is up 130 pips (+0.66%) to 1.9760
The forex calendar for the Wednesday afternoon London/morning U.S. session is near empty as well with only the monthly U.S. Federal budget balance (-$19B forecast vs. $1.9B previous) at 7:00 pm GMT. This is not usually a market mover, but an event to be aware of in case we do see a big outlier number. So, the forex markets may continue to sleepy in the U.S., but could pick up quickly if we hear any new developments from the Greek debt crisis that has euro traders sitting on the edge of their seats. Stay frosty!
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