Forex Brokers London Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 22 08 12:19 GMT |

London Session Recap The buck saw some sideways trading in the London session as the lack of anything to bite on seems to have the market focused on stocks once again. Indeed, just as the session came to a close we saw a US bank report much worse than expected earnings and the buck come under pressure. Earnings have been the thing to watch in the last week or so and we expect they will continue to be a factor as US stocks continue to look for direction. That direction this morning is lower, with stock futures pointing to a -1% decline at the open. Europe was light on activity with two ECB speakers the only highlights overnight. The tone continued to be hawkish with Bini Smaghi saying that the current interest rate is not “exactly restrictive” -- in other words, not too high. Liebscher followed this up by noting that the ECB must prevent “worrying” inflation. So while the ECB’s stance is that they have “no bias”, they are clearly ready to act if inflation becomes unmoored. EUR/USD was a touch lower in the session, opening near 1.5920 and closing around the 1.5910 mark. USD/JPY was lower as unsteady European stock markets likely led to some paring of carry trades. Stocks in Europe were down about -2% last we checked and this coupled with the expected poor open in US stocks is helping to put pressure on JPY crosses. USD/JPY opened London trading near 106.50 and was sitting near 106.40 at the close. A poor US earnings report sent the pair as low as 106.05 in early NY trading. Stay tuned for some major earnings releases after the US stock market close. Upcoming Economic Data Releases (NY Session) Prior Estimate 7/22 12:10 GMT US Paulson Speaks in NYon U.S. Economy, Markets 7/22 12:30 GMT CA Retail Sales MoM MAY 0.60% 0.50% 7/22 12:30 GMT CA Retail Sales Less Autos MoM MAY 1.10% 0.60% 7/22 12:30 GMT US Fed's Plosser Speaks in PA on U.S. Economy 7/22 14:00 GMT US Richmond Fed Manufact. Index JUL -12 -10 7/22 14:00 GMT US House Price Index MoM MAY -0.80% - - 7/22 21:00 GMT US ABC Consumer Confidence 20-Jul -41 -41 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.