Article Highlights

  • European current account (seasonally adjusted) higher than previous reads: 21.8B vs 14.9B
  • U.K. Retail Sales (including Auto Fuel) inline with forecasts at 0.3%.  Downward revision to the November number from -0.7% to -0.9%
  • U.S. Initial Jobless Claims print 379K vs. the 336K forecast, and higher than the previous read of 368K.
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It was a quieter-than-expected morning London session as the reaction to the $10B Fed Taper was pretty muted, even with data from both Europe and the U.K.

Despite a reduction in bond purchases from the Fed, we didn’t see much action taken in the Greenback from European traders at the London open as EUR/USD and USD/CHF stayed in about a 20 pip range, and USD/JPY in a 35 pip range in the morning session.

At 9 am GMT, Europe printed better-than-previous current account numbers.  Both the seasonally adjusted and unadjusted read higher than that previous month, but hardly garnering any reaction.  The U.K. retail sales number (usually a catalyst for volatility in Sterling pairs) came inline at 0.3% with forecasts, also resulting in barely any movement.

Half an hour ago, we got the weekly US initial claims numbers which came in weaker-than-expected at 379K vs. 336K forecast.  The reaction has been mostly been supportive for the US Dollar since the release.

The London session will close out today with prints from the Philadelphia Fed Survey (forecast 10.0) and U.S. existing home sales (forecast 5.02M).  Both numbers, if positive, could fuel further positive risk sentiment and USD strength, and vice versa on a negative read.  In either case, be prepared and focused!

See also:

Asian Session Recap

U.S. Session Recap

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