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The pound and the Greenback bitterly fought it out during the session. But there can only be one in the end, and that happened to be the pound. The pound’s victory was slim, though, so the Greenback still has a chance to win out in the upcoming U.S. session.

The Aussie and the Kiwi, meanwhile, were in a race to the bottom since the two higher yielding currencies were the two worst-performing currencies of the session, even though risk appetite returned.

  • UBS’ Swiss consumption indicator: 1.38 vs. 1.30 previous
  • UBS’ Swiss consumption indicator: 1.38 vs. 1.30 previous
  • KOF’s Swiss economic barometer: 104.1 v.s 107.0 expected, 106.8 previous
  • Credit Suisse economic expectations: 25.0 vs. 34.7 previous
  • Spanish flash CPI y/y: 1.6% vs. 1.7% expected, 1.5% previous
  • U.K. net lending to individuals m/m: £4.8B vs. £5.3B expected, £5.5B previous
  • U.K. mortgage approvals: 69K vs. 66K expected, 65K previous

Major Events/Reports

Commodities crushed

Commodities had a reversal of fortune since they were broadly in retreat during the session after a nice rally yesterday.

There were no apparent negative catalysts, but according to market analysts, the reversal in commodity prices was due to the Greenback’s recovery since that made globally traded commodities relatively more expensive.

And for reference, the U.S. dollar index was up by 0.30% to 92.55 for the day when the morning London session came to an end.

Precious metals were hammered down.

  • Gold was down by 0.28% to $1,315.17 per troy ounce
  • Silver was down by 0.24% to $17.385 per troy ounce

Base metals also got a beating.

  • Copper was down by 0.31% to $3.095 per pound
  • Nickel was down by 0.70% to $11,645.00 per dry metric ton

Oil benchmarks were sinking.

  • U.S. WTI crude oil was down by 0.75% to $46.09 per barrel
  • Brent crude oil was down by 0.41% to 51.45 per barrel

Upbeat day in Europe today

After yesterday’s intense bout of risk aversion in Europe, risk sentiment apparently improved today, since the major European equity indices were mostly in positive territory.

Aside from the main narrative about easing concerns over North Korea, market analysts also pointed to strong earnings results as the reason for the risk-friendly mood in Europe today.

  • The pan-European FTSEurofirst 300 was up by 0.60% to 1,456.95
  • Germany’s DAX was up by 0.54% to 12,010.75
  • The blue-chip Euro Stoxx 50 was up by 0.52% to 3,405.50

The risk-on vibes also bouyed U.S. equity futures.

  • S&P 500 futures were up by 0.04% to 2,448.00
  • Nasdaq futures were up by 0.10% to 5,875.75

Major Market Mover(s):

GBP

Price action on GBP/USD was choppy but the pound was able to end the session with a win against the rebounding Greenback. As such, the pound ended up as the top-performing currency of the session.

Available catalysts were actually mixed, however. Also, the pound has actually been trending higher (except on GBP/USD) since the earlier Asian session. There were no apparent catalysts, but some market analysts were saying that the pound’s strength was due to selling pressure on EUR/GBP, which was off multi-month highs and boosted other pound pairs.

GBP/USD was up by 12 pips (+0.10%) to 1.2921, GBP/NZD was up by 55 pips (+0.31%) to 1.7855, GBP/AUD was up by 62 pips (+0.38%) to 1.6267

USD

The Greenback was the second best-performing currency of the session. And market analysts attributed the Greenback’s strength on easing jitters related to North Korea after Trump refrained from responding with another titillating “fire and fury” statement and opted to focus on the devastation brought by Hurricane Harvey instead.

USD/CHF was up by 15 pips (+0.16%) to 0.9576, USD/JPY was up by 18 pips (+0.17%) to 110.08, USD/CAD was up by 15 pips (+0.12%) to 1.2548

AUD & NZD

The Aussie and the Kiwi had a tough time during the morning London session, even though risk sentiment recovered. There were no direct catalysts, but it’s highly likely that the commodities rout was weighing down on the two comdolls.

AUD/USD was down by 22 pips (-0.28%) to 0.7943, AUD/CAD was down by 15 pips (-0.15%) to 0.9964, AUD/CHF was down by 7 pips (-0.10%) to 0.7606

NZD/USD was down by 15 pips (-0.20%) to 0.7235, NZD/CAD was down by 9 pips (-0.10%) to 0.9076, NZD/JPY was down by 15 pips (-0.19) to% 79.65

Watch Out For:

  • 12:15 pm GMT: ADP’s non-farm employment (185K expected, 178K previous)
  • 12:30 pm GMT: Canada’s current account (-$17.3B expected, -$14.1B previous)
  • 12:30 pm GMT: U.S. preliminary Q2 GDP (2.7% expected, 2.6% previous)
  • 1:15 pm GMT: U.S. Fed Governor Jerome Powell will speak
  • 2:30 pm GMT: U.S. crude oil inventories (-1.8M expected, -3.3M previous)