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There wasn’t much in terms of market-moving news or economic reports during today’s morning London session. However, some currencies were clearly on the move despite the lack of catalysts.

And noteworthy among these is the pound’s broad-based rise and the Aussie’s weakness, despite the risk-on vibes.

  • Italian trade balance: €5.25B vs. €4.44B expected, €4.84B previous
  • Euro Zone trade balance: €23.8B vs. €22.3B expected, €22.0B previous

Major Events/Reports

Commodities fall

The broad-based commodities rally came crashing down during the morning London session, with most commodities leaking red.

There were no apparent catalysts for the broad-based commodities retreat, however.

And market analysts couldn’t really point the finger at the Greenback since the U.S. dollar was still down by 0.22% to 88.71 for the day when the morning London came to an end, which should have lent support to commodity prices.

But then again, the U.S. dollar index was off the day’s low at 88.49, so it’s possible that the Greenback’s recovery spooked some commodity traders.

Other than that, some market analysts blamed the slide in oil prices on renewed focus on the rise in U.S. oil output and higher U.S. oil inventories.

Base metals were actually mixed, but most were in the red.

  • Copper was down by 0.40% to $3.223 per pound
  • Tin was down by 0.06% to $21,555.00 per dry metric ton

Precious metals were also in the gutter.

  • Gold was down by 0.32% to $1,353.60 per troy ounce
  • Silver was down by 0.43% to $16.805 per troy ounce

And the same can be said of oil benchmarks.

  • U.S. WTI crude oil was down by 0.25% to $60.45 per barrel
  • Brent crude oil was down by 0.70% to $63.91 per barrel

More risk-taking in Europe

Europe enjoyed another round of risk-taking that sent the major European equity indices higher during the session.

And market analysts say that investors were discounting the higher U.S. inflation, and shifting their focus back on positive earnings reports for European companies instead.

  • The pan-European FTSEurofirst 300 was up by 0.77% to 1,480.37
  • Germany’s DAX was up by 0.78% to 12,431.98
  • The blue-chip Euro Stoxx 50 was up by 0.71% to 3,402.50

U.S. equity futures were also buoyed by the risk-on vibes, so the risk-friendly environment will likely carry over into the upcoming U.S. session.

  • S&P 500 futures were up by 0.49% to 2,710.25
  • Nasdaq futures were up by 0.57% to 6,725.00

Major Market Mover(s):


The pound stomped all its peers to come out as the currency champion of the morning London session, even though there weren’t really any apparent catalysts.

Some market analysts tried to attribute the pound’s strength on the Greenback’s weakness. However, I’m not too sure about that since the Greenback actually steadied against most of its peers and was mixed for the session.

GBP/USD was up by 16 pips (+0.12%) to 1.4064, GBP/JPY was up by 48 pips (+0.33%) to 149.95, GBP/AUD was up by 105 pips (+0.60%) to 1.7751


The higher-yielding Aussie was the worst-performing currency of the morning London session, even though risk appetite prevailed. Gold and other commodities were tumbling, though, and it’s probable that the Aussie was taking directional cues from those.

AUD/USD was down by 41 pips (-0.51%) to 0.7922, AUD/CHF was down by 35 pips (-0.48%) to 0.7328, AUD/CAD was down by 26 pips (-0.25%) to 0.9902

Watch Out For:

  • 1:30 pm GMT: Headline (0.4% expected, -0.1% previous) and core (0.2% expected, -0.1% previous) U.S. PPI
  • 1:30 pm GMT: U.S. initial jobless claims (228.0K expected, 221.0K previous)
  • 1:30 pm GMT: ADP’s Canadian non-farm employment change (-7.1K previous)
  • 1:30 pm GMT: Empire State survey (18.0 expected, 17.7 previous)
  • 1:30 pm GMT: Philadelphia Fed Survey (22.0 expected, 22.2 previous)
  • 2:45 pm GMT: U.S. capacity utilization (78.0% expected, 77.9% previous)
  • 2:45 pm GMT: U.S. industrial production (0.2% expected, 0.9% previous
  • 3:00 pm GMT: NAHB U.S. builders survey (72.0 expected, same as previous)
  • 6:30 pm GMT: BOC Deputy Governor Lawrence Schembri will speak
  • 9:30 pm GMT: BNZ manufacturing index (51.2 previous)