Article Highlights

  • Italian trade balance: -€0.57B vs. €3.45B expected, €5.73B previous
  • Euro Zone trade balance: €15.7B vs. €22.3B expected, €23.1B previous
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The Kiwi was the one currency to rule them all during the session, thanks to rallying commodities and the risk-on vibes. The euro, meanwhile, got whupped after a poll showed Le Pen taking more ground.

Major Events/Reports:

Commodities rallyCommodities got bid higher pretty much across the board during the morning London session.

Base metals got some love from buyers.

  • Copper was up by 0.24% to $2.684 per pound
  • Zinc was up by 1.13% to $2,865.00 per dry metric ton

Oil benchmarks were also well-supported.

  • U.S. WTI crude oil was up by 0.57% to $49.03per barrel
  • Brent crude oil was up by 0.54% to $52.02 per barrel

Precious metals, meanwhile, were in the green, despite the risk-on vibes.

  • Gold was up by 0.28% to 1,230.50 troy ounce
  • Silver was up by 0.42% to 17.402 per troy ounce

Market analysts attributed the broad-based commodities rally on the weaker Greenback. This seems kinda weird at first, since the U.S. dollar index was actually up by 0.10% to 100.19 for the day when the session ended. However, the Greenback has yet to recover from its major slump in the aftermath of the FOMC statement earlier during the week.

A little optimism to end the week – Many European equity indices started the session in the red. However, it soon became clear that risk appetite was more dominant as equity indices began turning green.

  • The pan-European FTSEurofirst 300 was up by 0.11% to 1,490.84
  • Germany’s DAX was up by 0.12% to 12,097.50
  • The blue-chip Euro Stoxx 50 was upby 0.31% to 3,449.50
  • The U.K.’s FTSE 100 was up by 0.19% to 7,430.00

Market analysts point out that mining and energy shares were leading the bullish charge in European equities. The risk-on mood is therefore apparently due to the commodities rally during the session.

Le Pen takes more ground – According to opinionway’s latest daily poll, anti-EU Marine Le Pen widened her lead in the first round of the French presidential elections. Voting intention for Le Pen now sits at 28% after holding steady at 27% since Monday. Macron, Le Pen’s closest rival, has 25%.

For the second round of the elections, Le Pen is still expected to Macron. However, Macron’s lead narrowed, with voting intentions now at 59-41 in favor of Macron. It came in at 60-40 yesterday and 61-39 the day before that.

Major Market Mover(s):

EUR – The euro was already showing signs of weakness during the course of the session, likely because of the risk-on vibes. However, it got a swamped by sellers near the end shortly after opinionway’s poll came out.

EUR/USD was down by 45 pips (-0.42%) to1.0734, EUR/CHF was down by 35 pips (-0.33%) to 1.0704, EUR/NZD was down by 123 pips (-0.80%) to 1.5285

NZD – The risk-on vibes and commodities rally apparently gave the Kiwi a boost, allowing the Kiwi to end up as the strongest currency of the session.

NZD/USD was up by 26 pips (+0.37%) to 0.7021, NZD/CHF was up by 33 pips (+0.48%) to 0.7002, NZD/CAD was up by 45 pips (+0.49%) to 0.9362

Watch Out For:

  • 12:30 pm GMT: Canadian manufacturing sales (2.3% previous)
  • 1:15 pm GMT: U.S. industrial production (0.3% expected, -0.3% previous)
  • 1:15 pm GMT: U.S. capacity utilization (75.5% expected, 75.3% previous)
  • 2:00 pm GMT: University of Michigan’s preliminary consumer sentiment index (97.1 expected, 96.3 previous)
  • 2:00 pm GMT: CB’s U.S. leading index (0.4% expected, 0.6% previous)

See also:

Asian Session Recap 
U.S. Session Recap

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