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There wasn’t much in terms of market-moving reports on the docket during today’s morning London session, so price action was a bit choppy on most pairs.

With that said, it looks like traders took directional cues from risk sentiment in other markets since the higher-yielding Aussie and Kiwi both caught a bid, likely because of the risk-on vibes and rising commodity prices.

Meanwhile, the safe-haven yen closed the session on a lower note, likely because of the risk-friendly environment and rise in global bond yields.

  • No major economic reports were released during the European session

Major Events/Reports

Some risk-taking to start the week

The major European equity indices opened the new trading week on a mixed note. However, it soon became apparent that risk-taking was the more dominant sentiment in Europe since the major European equity indices began to print gains one after another.

And according to market analysts, the risk-on vibes in Europe was due to growing expectations that the political limbo in Germany will finally be resolved after SPD members voted in favor of supporting coalition talks with German Chancellor Merkel.

  • The pan-European FTSEurofirst 300 was up by 0.17% to 1,578.48
  • Germany’s DAX was up by 0.11% to 13,449.50
  • The blue-chip Euro Stoxx 50 was up by 0.26% to 3,658.50

Global bond yields in the green

The major European equity indices were not the only ones in the green since global bond yields were also in positive territory, indicating that risk-appetite really was the dominant sentiment in Europe.

  • German 10-year bond yield up by 2.83% to 0.582%
  • French 10-year bond yield up by 2.66% to 0.863%
  • U.K. 10-year bond yield up by 2.24% to 1.369%
  • U.S. 10-year bond yield up by 0.56% to 2.654%
  • Canadian 10-year bond yield up by 0.04% to 2.244%

Most commodities enjoy gains but oil leaks red

Most commodities extended their gains from the earlier session. However oil benchmarks tooks hits later on and were already in the red by the end of the morning London session.

Anyhow, the rise in commodity prices was likely sustained by the Greenback’s weakness.

And for reference, the U.S. dollar index was down by 0.22% to 90.29 for the day when the session ended, which would have made commodities relatively cheaper and more attractive to buy.

Other than that, market analysts also cited supply concerns and optimism in global growth as the general reasons for the rise in base metals prices.

As for the slide in oil prices, there’s no clear reason for that yet. However, market analysts said earlier when oil was still in the green that an expected rise in Libyan oil output was the reason why oil was reluctant to climb higher. Perhaps worries related to an increase in Libyan oil supply finally outweighed other factors propping oil prices up?

Base metals were in positive territory.

  • Copper was up by 0.67% to $3.209 per pound
  • Nickel was up by 0.45% to $12,745.00 per dry metric ton

Precious metals were also in the green but they gave back some gains, likely because of the risk-on vibes in Europe.

  • Gold was up by 0.04% to $1,333.60 per troy ounce
  • Silver was up by 0.20% to $17.070 per troy ounce

Oil benchmarks were also in positive territory earlier, but they were slapped into the red during the course of the session.

  • U.S. WTI crude oil was down by 0.02% to $63.30 per barrel
  • Brent crude oil was down by 0.06% to $68.57 per barrel

Major Market Mover(s):


The higher-yielding Kiwi and Aussie both caught a bid and were the top-performing currencies of the morning London session, likely because both higher-yielding comdolls benefited from the risk-on vibes and rising commodity prices.

AUD/USD was up by 10 pips (+0.12%) to 0.8008, AUD/CHF was up by 9 pips (+0.11%) to 0.7695, AUD/CAD was up by 16 pips (+0.16%) to 0.9987

NZD/USD was up by 15 pips (+0.20%) to 0.7320, NZD/CHF was up by 12 pips (+0.18%) to 0.7018, NZD/CAD was up by 23 pips (+0.25%) to 0.9108


The risk-friendly environment may have been great for the higher-yielding Kiwi and Aussie, but it was toxic for the safe-haven yen, so much so that the yen barely lost out to the Greenback to end up as the worst-performing currency of the morning London session.

USD/JPY was up by 6 pips (+0.05%) to 110.83, NZD/JPY was up by 20 pips (+0.25%) to 80.93, AUD/JPY was up by 14 pips (+0.16%) to 88.74

Watch Out For:

  • 1:30 pm GMT: Canadian wholesale sales (1.0% expected, 1.5% previous)