- French final HICP m/m: unrevised at 0.3% as expected
- French final HICP y/y: unrevised at -0.1% as expected
- Italian final HICP m/m: unrevised at -0.2% as expected
- Italian final HICP y/y: unrevised at -0.4% as expected
- Euro Zone employment change q/q: 0.3% vs. 0.2% expected, 0.3% previous
- Euro Zone employment change y/y: 1.2% vs. 1.1% expected, 1.1% previous
There were no top-tier reports during today’s morning London forex session, so forex traders turned once more to market sentiment and commodities for direction.
Commodities continue to crumble – Commodities were broadly in the red during the morning London session, thanks to a relatively stronger U.S. dollar and a profit-taking ahead of the FOMC statement tomorrow, according to market analysts.
The base metal copper was down by 0.92% to $2.219 per pound during the session while oil benchmarks were deep in negative territory, with U.S. crude oil down by 2.47% to $36.26 per barrel and Brent blend crude down by 2.43% to $38.57 per barrel during the morning London session.
Even precious metals that usually serve as safe-havens were not immune from the slide, with gold down by 0.86% to $1,234.40 per troy ounce during the session.
Skittish risk sentiment – There was a noticeable lack of risk taking during today’s morning London session, and market analysts were blaming the BOJ’s rather downbeat outlook and sliding commodity prices for the gloomy atmosphere.
The pan-European FTSEurofirst 300 was down by 1.03% to 1,342.52 while the DAX was down by 0.53% to 9,937.80. It also looks like risk aversion will spill over into the upcoming U.S. session since U.S. equity futures were moderately in the red, with the S&P 500 futures down by 0.53% to 1,998.65 and Nasdaq futures down by 0.41% to 4,340.10 during the morning London session.
Major Currency Movers:
Comdolls – Sliding commodities and the prevalence of risk aversion easily crushed demand for the higher-yielding comdolls (AUD, NZD, CAD), with the Loonie being the weakest among the three, likely because of the strong down move in oil prices during morning London session.
AUD/USD was down by 28 pips (-0.38%) to 0.7462, AUD/NZD was down by 26 pips (-0.24%) to 1.1222
NZD/USD was down by 10 pips (-0.14%) to 0.6648, NZD/JPY was down by 41 pips (-0.57%) to 75.05
NZD/CAD was up by 39 pips (+0.45%) to 0.8892, AUD/CAD was up by 20 pips (+0.21%) to 0.9979
Safe-havens – The safe-haven currencies (USD, CHF, JPY) got some love from forex traders due to the risk-off sentiment during the session. Among the safe-havens, the yen emerged as the one currency to rule them all, probably because European forex traders were also pricing-in the BOJ’s earlier decision to refrain from easing further.
USD/CAD was up by 77 pips (+0.58%) to 1.3374, USD/CHF was up by 9 pips (+0.09%) to 0.9882
USD/JPY was down by 46 pips (-0.14%) to 112.90, CHF/JPY was down by 48 pips (-0.43%) to 114.35
AUD/CHF was down by 26 pips (-0.35%) to 0.7368, GBP/CHF was down by 108 pips (-0.77%) to 1.3982
GBP – The pound was the weakest currency during the morning London session. Aside from the lack of risk-taking that was likely detrimental to the higher-yielding pound, Brexit fears were likely weighing down on the pound as well since many media outlets kept mentioning a poll by the Daily Telegraph, which showed that Brexit supporters had an advantage because they were more likely to show up and vote.
GBP/USD was down by 114 pips (-0.80%) to 1.4159, GBP/JPY was down by 174 pips (-1.08%) to 160.08, GBP/CAD was down by 41 pips (-0.22%) to 1.8937
- 1:30 pm GMT: Headline (-0.2% expected, 0.2% previous) and core (-0.2% expected, 0.1% previous) readings for U.S. retail sales
- 1:30 pm GMT: Headline (-0.2% expected, 0.1% previous) and core (0.1% expected, 0.4% previous) readings for U.S. PPI
- 1:30 pm GMT: U.S. Empire State manufacturing index (-10.50 expected, -16.64 previous)
- 3:00 pm GMT: U.S business inventories (0.0% expected, 0.1% previous)
- 3:00 pm GMT: NAHB U.S. builders survey (59 expected, 58 previous)
- New Zealand’s current account (-$2.88B expected, -$4.75B previous)
- Dairy auction currently underway
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical weeks!