London Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 23 08 11:56 GMT |

The greenback was higher for the most part in the London session as very weak Eurozone data helped it extend gains. French consumer spending for June was a paltry -0.4% and the annual growth rate was a weaker than expected 1.0%, to boot. Eurozone industrial orders for May was even worse coming in at -3.5% versus an expected -1.3% print. This put pressure on EUR/USD, taking the pair from an open near 1.5790 to 1.5730 at the close. The JPY crosses were bid in London trading as a good stock market performance across the globe likely fuelled carry trades further. Asian marts were up about 1% while Europe was up roughly 1.5% last we looked. USD/JPY rallied from an open near 107.25 to around 107.80 at the close. We expect the pair to be focused on US earnings reports once again and we have a number of insurance companies reporting after the US stock market close. Stay tuned. GBP looks to be the only one to have made some gains against the buck in the London session. The latest BOE minutes were released and showed that the vote on rates was 7-1-1 for no move. Timothy Besley proffered an increase of 25 bps while David Blanchflower favored a reduction of 25 bps. The market took the news as hawkish and helped GBP/USD from an open near 1.9930 to a close around the 1.9985 mark. Upcoming Economic Data Releases (NY Session) Prior Estimate 7/23 13:00 GMT US Fed's Mishkin Speaks at Bank of Canada Conference 7/23 15:15 GMT US Fed's Kohn Speaks on Transparency 7/23 18:00 GMT US Fed's Beige Book 23-Jul 7/23 21:00 GMT NZ RBNZ Official Cash Rate 24-Jul 8.25% 8.25% 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.