London Session Recap
To the same degree that yesterday's London Session was overloaded with market-moving data and information, the early hours of Thursday's trading has been absent of any dominant theme. The currency moves reflect this general indifference of traders around the globe. In fact, a glance at the majors reveals multiple personalities, none of which reflect a straight “dollar move” or “Euro move”. Market participants seem content with the current environment, adjusting according to risk appetite and digesting the news of the day.
Heading into European trading, EURUSD was trading around the 1.5800 area. The Greenback caught a wave of buying and proceeded to maintain a firm bid for the opening hours of the day. EURUSD slipped lower, accelerating its pace as the magnitude of the fall increased. While the pair found its way to a 1.5725 bottom, the orderly move pushed USDJPY to the 99.50 zone. Profit-taking hit EURGBP, propping GBPUSD despite the strong Greenback. Midway through the tepid London morning, EURUSD staged a full reversal back up to 1.5800, right back to where we started. As USDJPY held its ground, EURJPY took the ride higher, plowing up above 157.25, moving in sympathy with higher assets of risk (equities).
The only major news headlines that crossed came from the Middle East. It was reported that the second largest Iraqi oil pipeline exploded, cutting off 1/3 of its flow. Crude futures immediately spiked $1.00 to $107/barrel on the story. Just as it seemed energy prices were heading lower, black gold finds itself within striking distance of the highs. While markets other than FX will be watched by with a careful eye, traders will also be focused on the economic data to be released in the New York morning, highlighted by the 0830 EDT release of final Q4 GDP numbers.
Upcoming Economic Data Releases (New York Session)
- 0830 EDT US - Q4 GDP Annualized, consensus: +0.6% (relevance: medium)
- 0830 EDT US - Q4 GDP Price Index, consensus: +2.7% (relevance: low)
- 0830 EDT US - Q4 Personal Consumption, consensus: +1.9% (relevance: medium)
- 0830 EDT US - Q4 Core PCE, consensus: +2.7% (relevance: high)
- 0830 EDT US - Initial Jobless Claims, consensus: 370k (relevance: low)
- 0830 EDT US - Continuing Claims, consensus: 2885k (relevance: low)
- 1000 EDT US - Feb Help Wanted Index, consensus: 20 (relevance: low)
Forex.com
http://www.forex.com
DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
|
