Article Highlights

  • German import price index m/m: 1.9% vs. 1.3% expected, 0.7% previous
  • French INSEE consumer confidence: 100 as expected vs. 99 previous
  • Italian consumer confidence: 108.8 vs. 110.6 expected, 110.9 previous
  • Euro Zone private loans y/y: 2.0% as expected vs. 1.9% previous
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There was volatility aplenty during today’s morning London session. However, directional movement left a lot to be desired, since price action was rather choppy, with many pairs trading sideways. The pound was an exception, though, since it was experiencing broad-based weakness.

Major Events/Reports:

Commodities crumble (again) – Commodities got another broad-based beat-down today.

Precious metals got whupped… again.

  • Gold was down by 0.73% to $1,181.15 per troy ounce
  • Silver was down by 0.91% to $16.697 per troy ounce

Base metals were also leaking red… again.

  • Copper was down by 0.04% to $2.672 per pound
  • Tin was down by 1.18% to $19,932.50 per dry metric ton

Interestingly enough, oil benchmarks decided to join the rout today after going against the flow yesterday.

  • U.S. crude oil was down by 0.69% to $53.41 per barrel
  • Brent crude oil was down by 1.05% to $55.65 per barrel

Today’s broad-based commodities rout was very likely still due to the stronger Greenback. And for reference, the U.S. dollar index was up by 0.20% to 100.72 for the day when the session ended. Aside from that, market analysts also point to worries over rising U.S. oil output for the drop in oil prices today.

Some risk aversion to end the week – After three straight days of risk-taking, signs of risk aversion finally began to show in Europe.

  • The pan-European FTSEurofirst 300 was down by 0.49% to 1,444.00
  • The blue-chup Euro Stoxx 50 was down by 0.37% to 3,302.50
  • Germany’s DAX was down by 0.21% to 11,825.50
  • The U.K.’s FTSE 100 was down by 0.06% to 7,157.75

Market analysts blamed the return of risk aversion on poor reports for UBS, which weighed down on banking shares. And this, in turn, dampened overall risk sentiment. Although it’s also possible that we’re just seeing some profit-taking after a mostly risk-on week.

Major Market Movers:

GBP – There were no major economic reports for the pound. However, it was clearly retreating across the board during the course of the session. Again, there were no direct catalysts, but it’s possible that we’re seeing continued profit-taking amid Brexit concerns as British MPs gear up to discuss the Brexit Bill and British PM Theresa May prepares to meet with U.S. President Trump.

GBP/USD was down by 20 pips (-0.16%) to 1.2535, GBP/CHF was down by 27 pips (-0.22%) to 1.2549, GBP/AUD was down by 39 pips (-0.24%) to 1.6638

Watch Out For:

  • 1:30 pm GMT: U.S. advanced Q4 2016 GDP (2.2% expected, 3.5% previous); read Forex Gump’s trading guide here
  • 1:30 pm GMT: Headline (2.5% expected, -4.5% previous) and core (0.5% expected, 0.6% previous) readings for U.S. durable goods orders
  • 3:00 pm GMT: University of Michigan final consumer sentiment index (no change from 98.1 expected)

See also:

Asian Session Recap 
U.S. Session Recap

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