Article Highlights

  • Swiss GDP q/q: 0.0% vs. 0.3% expected, 0.6% previous
  • Swiss GDP y/y: 1.3% vs. 1.8% expected, 2.0% previous
  • U.K. construction PMI: 52.8 vs. 52.2 expected, 52.6 previous
  • Euro Zone PPI m/m: 0.8% vs. 0.4% expected, 0.1% previous
  • Euro Zone PPI y/y: -0.4% vs. -1.0% expected, -1.5% previous
  • U.S. NFP reporting coming up
  • Canada’s jobs report also on the lineup
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Trading conditions were rather tight during today’s morning London session, likely because forex traders were hunkering down for the last NFP report before the December FOMC statement.

Major Events/Reports:

NFP Friday! – Today is another NFP Friday! And as usual, both directional movement and volatility got sapped on most pairs, as forex traders hunkered down ahead of the NFP report.

The NFP report is a top-tier report, but the upcoming NFP report is even more special because it is the last NFP report before the December FOMC statement. Expectations for a December rate hike are therefore also riding on the upcoming NFP report.

Having said that, if you’re planning to trade the November NFP report and need to get up to speed on what happened last time and what’s expected this time, then make sure read up on Forex Gump’s Forex Preview here.

While you’re at it, you may wanna check out Forex Gump’s Forex Preview for Canada’s jobs report as well. You can read it here.

U.K. construction PMI climbs – Yesterday’s U.K. manufacturing PMI reading was big miss, but today’s U.K.’s construction PMI reading somehow makes up for yesterday’s disappointment. You see, the U.K.’s November construction PMI was expected to slide from 52.6 to 52.2. Instead, the reading climbed higher to 52.8, which is a seven-month high to boot.

According to the details of the PMI report, the improved reading was due to “Business activity and incoming new work [increasing] at the strongest pace since March.” Commercial building activity even picked up “for first time in six months.” However, these positive developments were tempered a bit by “a steep and accelerated rise in … cost burdens,” thanks to the pound’s recent weakness.

Risk aversion persists – Europe got swamped by another wave of risk aversion during today’s morning London session. As such, almost all of the major European equity indices got pushed into negative territory.

  • The pan-European FTSEurofirst 300 was down by 1.03% to 1,329.06
  • The blue-chip Euro Stoxx 50 was down by 1.13% to 2,992.00
  • Germany’s DAX was down by 1.07% to 10,421.50

Even U.S. equity futures got dragged lower.

  • S&P 500 futures were down by 0.29% to 2,185.75
  • Nasdaq futures were down by 0.48% to 4,713.62

Market analysts blamed the most recent bout of risk aversion on skittishness ahead of the NFP report and profit-taking because of uncertainty with regard to this weekend’s Italian referendum.

 Major Market Movers:

EUR – Most currency pairs were trading sideways during the session. However, that was not the case with euro pairs, since the euro weakened across the board. There were no apparent catalysts, though. And it gets even weirder because European equities were leaking red. Speaking of European equities, however, market analysts did blame the slide in European equities to jitters ahead of the Italian referendum. And worries over the Italian referendum were likely weighing down on the euro as well.

EUR/USD was down by 49 pips (-0.37%) to 1.0630, EUR/CHF was down by 30 pips (-0.28%) to 1.0751, EUR/NZD was down by 55 pips (-0.37%) to 1.4988

Watch Out For:

  • 1:30 pm GMT: U.S. non-farm payrolls (180K expected, 161K previous)
  • 1:30 pm GMT: U.S. jobless rate (steady at 4.9% expected)
  • 1:30 pm GMT: U.S. average hourly earnings (0.2% expected, 0.4% previous)
  • 1:30 pm GMT: Canada’s net change in employment (-15K expected, 43.9K previous)
  • 1:30 pm GMT: Canada’s jobless rate (steady at 7.0% expected)
  • 1:45 pm GMT: U.S. Fed Governor Lael Brainard will give a short speech
  • 6:00 pm GMT: U.S. Fed Governor Daniel Tarullo will deliver a speech

See also:

Asian Session Recap

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. 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 weeks!