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Price action was choppy for the most part and most pairs didn’t really have any clear trend. And the lack of action during today’s morning London session was very likely due to traders hunkering down for the U.S. NFP report.

One currency of note is the euro since it got kicked broadly lower at the start of the session and then encountered more sellers that made it the worst-performing currency of the session.

Another currency of note is the pound since it found late buyers that pushed it higher across the board, despite a slew of disappointing U.K. economic reports.

  • German industrial production m/m: -0.1% vs. 0.6% expected, -0.5% previous
  • German trade balance: €21.3B vs. €21.2B expected, €21.3B previous
  • French budget balance: -€10.8B vs, -€67.8B previous
  • French industrial production m/m: -2.0% vs. -0.2% expected, 0.2% previous
  • U.K. industrial production m/m: 1.3% vs. 1.5% expected, -1.3% previous
  • U.K. manufacturing production m/m: 0.1% vs. 0.2% expected, 0.3% previous
  • Construction output in the U.K. m/m: -3.4% vs. -0.4% expected, 1.6% previous
  • U.K. goods trade balance: -£12.3B vs. -£12.0B expected, -£11.8B previous

Major Events/Reports:

NFP Friday!

Today is another U.S. non-farm payrolls (NFP) Friday!

Normally, volatility and directional movement both get sapped as traders keep their heads down ahead of the NFP report.

And today was certainly a very normal day since most currency pairs were milling about in tight ranges, with many closing flat for the session.

By the way, if you’re planning to trade the NFP report, then you may wanna check out Forex Gump’s Event Preview for the upcoming NFP report.

And while you’re at it, you may also wanna check out Forex Gump’s Event Preview for Canada’s jobs report.

Germany challenges Trump’s tariffs

Germany’s trade coordinator Juergen Hardt was interviewed by Reuters earlier and he called Trump’s tariffs a “blow to transatlantic economic ties.”

He also lambasted Trump’s decision further, saying that:

“It would have been right to exempt European allies from the punitive tariffs.”

“The U.S. and Europe could have acted together to end unfair trade practices, for instance by China.”

Germany later upped the trade wars rhetoric when German government spokesman Georg Streiter announced that:

“The European Union has decided to respond clearly to the U.S. measures and as the federal government we support this position.”

“The exact nature of the (EU) steps will be decided after a close analysis of the American measures”

Skittish risk sentiment in Europe

The major European equity indices started the morning London session on a firm footing.

But as it later turned out, the major European equity indices actually stepped on quick sand since they began returning their gains. And many of them were already in negative territory by the end of the session.

According to market analysts, the skittish risk sentiment in Europe was due to jitters ahead of the U.S. NFP report, as well as disappointing updates for some European companies.

  • The pan-European FTSEurofirst 300 was still up by 0.03% to 1,473.74 but off the day’s high at 1,475.36
  • Germany’s DAX was already down by 0.34% to 12,313.01
  • The blue-chip Euro Stoxx 50 was already down by 0.08% to 3,413.00

Major Market Mover(s):


The euro was the worst-performing currency of the session. There weren’t any clear catalysts, but it possible that we’re just seeing follow-through selling in the wake of yesterday’s ECB presser. It’s also possible that the euro was weighed down by Germany’s trade war rhetoric.

EUR/USD was up by 23 pips (-0.19%) to 1.2295, EUR/GBP was up by 23 pips (-0.26%) to 0.8889, EUR/CAD was up by 41 pips (-0.26%) to 1.5835


The pound was initially mixed but found late buyers near the end that made the pound the best-performing currency of the session.

There weren’t any clear catalysts for the pound’s rise, though. In fact, the only potential catalysts that were released during the session were all negative.

GBP/USD was down by 11 pips (+0.08%) to 1.3831, GBP/JPY was down by 32 pips (+0.22%) to 147.76, GBP/NZD was down by 40 pips (+0.20%) to 1.9034

Watch Out For:

  • 1:30 pm GMT: U.S. non-farm payrolls (+200K expected, +200K previous), jobless rate (4.0% expected, 4.1% previous), and average hourly earnings (0.2% expected, 0.3% previous)
  • 1:30 pm GMT: Canadian net employment change (+17.5K expected, -88.0K previous), jobless rate (steady at 5.9% expected), and labor force participation rate (65.6% expected, 65.5% previous)
  • 3:00 pm GMT: U.S. final wholesale inventories (0.7% expected, same as previous)