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The higher-yielding Aussie and Kiwi were initially in the lead, thanks to the risk-friendly vibes in Europe.

However, the euro later joined the fray and eventually outpaced the Aussie and Kiwi to claim the top spot (during this session at least).

The Greenback and the pound, meanwhile, were also in a race – to the bottom of the forex heap.

  • German industrial production m/m: -0.9% vs. -0.5% expected, 2.4% previous
  • German trade balance: €19.3B vs. €21.4B expected, €20.4B previous
  • French trade balance: -€6.2B vs. -€5.5B expected, -€6.0B previous
  • Swiss foreign currency reserves: CHF 750B vs. CHF 748B previous
  • U.K. Halifax HPI m/m: 1.4% vs. 0.2% expected, 0.9% previous

Major Events/Reports:

Commodities broadly rise

Commodities were in rally mode during the morning London, with almost all commodities in the green.

It’s likely that market players were enticed to load up on commodities because of the Greenback’s weakness, which makes globally-traded commodities cheaper for buyers holding non-USD currencies.

And for reference, the U.S. dollar index was down by 0.30% to 94.91 for the day when the session came to an end.

However, market analysts also attributed the rise in oil prices to the reimposition of sanctions on Iran by the U.S.

The rebound in base metals, meanwhile, was due to to short-covering due to speculation that top-consumer China will introduce fresh stimulus, market analysts say.

Base metals were in strong demand.

  • Copper was up by 1.04% to $2.760 per pound
  • Nickel was up by 1.30% to $13,865.00 per dry metric ton

Precious metals also got a boost.

  • Gold was up by 0.41% to $1,222.70 per troy ounce
  • Silver was up by 0.89% to $15.485 per troy ounce

Oil benchmarks were flying high.

  • U.S. WTI crude oil was up by 1.03% to $69.72 per barrel
  • Brent crude oil was up by 1.49% to $74.85 per barrel

Risk-on vibes in Europe

Europe enjoyed a bout of risk-taking during today’s morning London session, which sent the major European equity indices broadly higher.

And market analysts say that the risk-friendly vibes in Europe were due to risk sentiment spillover from the earlier sessions, with the recovery in Chinese stocks being cited in particular.

Aside from risk sentiment spillover, other market analysts also attributed the risk-friendly environment to positive earnings reports for certain European companies.

  • The pan-European FTSEurofirst 300 was up by 0.70% to 1,532.15
  • Germany’s DAX was up by 0.91% to 12,712.87
  • The blue-chip Euro Stoxx 50 was up by 0.89% to 3,510.45

The risk-on vibes in Europe also helped to push U.S. equity futures higher.

  • S&P 500 futures were up by 0.24% to 2,856.75
  • Nasdaq futures were up by 0.29% to 7,465.50

Major Market Mover(s):


The euro had a mixed start but soon began to encounter buyers. And there were apparently enough buyers to propel the euro higher against its peers, including the Aussie and Kiwi, which were in the lead at the time.

At any rate, buying pressure on the euro was strong enough to ultimately allow the euro to pull off an upset victory and claim the top spot (during this session at least).

As to what pushed the euro  higher, it’s not very clear. However, some market analysts suggested that the euro may have been feeding off the Greenbacks’s weakness.

EUR/USD was up by 25 pips (+0.23%) to 1.1602, EUR/CAD was up by 20 pips (+0.13%) to 1.5046, EUR/GBP was up by 21 pips (+0.23%) to 0.8949


The Greenback was the worst-performing currency of the morning London session. There were no apparent catalysts for the Greenback’s weakness, but some market analysts pointed to profit-taking since the Greenback’s trade-induced rally is supposedly seen as overdone.

USD/JPY was down by 19 pips (-0.18%) to 111.12, USD/CHF was down by 15 pips (-0.16%) to 0.9938, USD/CAD was down by 10 pips (-0.08%) to 1.2966


The pound was the second weakest currency after the Greenback and also happens to be the second weakest currency of the day (so far), also after the Greenback. There was no apparent reason for the pound’s weakness, but it’s possible that the pound is still encountering selling pressure because of Brexit-related jitters.

GBP/AUD was down by 40 pips (-0.23%) to 1.7432, GBP/NZD was down by 41 pips (-0.22%) to 1.9203, GBP/CHF was down by 25 pips (-0.20%) to 1.2884

Watch Out For:

  • 2:00 pm GMT: Canada’s Ivey PMI (64.2 expected vs. 63.1 previous)
  • 2:00 pm GMT: JOLTS job openings (6.74M expected vs. 6.64M previous)
  • 7:00 pm GMT: U.S. consumer credit ($15.0B expected vs. $24.6B previous)
  • Dairy auction currently underway (-1.7% previous); auction usually ends at around 2:00 pm GMT