London Session Recap

This morning's London session began with more dicey price action in the currency markets. Right from the start, Forex traders didn't have to look far to find the return of volatility in the majors, as the market was clearly reflecting investors' continued uncertainty regarding the global economy. EURUSD saw fast action between the 1.4700 support level and the 1.4760 resistance level several times throughout the day, giving short term traders a run for their money.

Cable traders spent most of the session gearing up for United Kingdom Retail Sales, the only top tier data released during the session. With session charts showing sterling edging ever higher, the data proved the longs to be correct. Retail Sales came in hot (MoM: .8%vs. .3% est. // YoY: 5.6% vs 2.7% est) and the pound ripped even higher. The pair shot 75+ pips to the upside immediately after the release and into the 1.9520s. With many traders thinking the move higher was subsiding, range traders looked to get short. However, the pair wasn't finished. These short sellers would see a vicious squeeze higher, as the pair would gain an additional 40+ pips and deal at the days highs into the end of the session.

Ahead in the upcoming NY session, traders will continue to look for a breakout from the majors' medium term consolidation levels. Also on tap in terms of data will be the Philly Fed, Initial Jobless claims, as well as leading indicators.

Upcoming Economic Data Releases

• US: 0830ET Initial Jobless Claims; Consensus +$349K
• US: 1000ET Philly Fed; Consensus -10

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