London Session Recap

Daily Forex Fundamentals | Written by Forex.com | Aug 11 08 11:40 GMT |

Elevated inflation data out of the Euro-zone helped EURUSD pare losses in the London session. German wholesale prices rose a higher than expected 1.4% in July after a 0.9% increase the previous month. This took the annual growth rate to a whopping 9.9% from 8.9% -- the highest run-rate on record -- and is likely to keep the inflation hawks on the ECB quite vocal. The weaker French industrial production, which fell -0.4% on the month in June while the market expected a 0.6% increase, limited the EUR gains however. EURUSD rose from an open near 1.4985 to a close around the 1.5015 mark in London trading. Inflation data in the UK were more tame than expected, with input producer prices falling -0.6% in July while output prices rose just 0.4%. The trade balance was worse than expected at -£4414 in June from a prior -£4073. Despite the weaker tone to economic data, USD weakness helped GBPUSD rally a touch in London. The pair opened near 1.9200 and was sitting near 1.9215 at the close. USDCAD continued to trade sideways as the market awaits Canadian housing starts data in the NY morning. The market is looking for a decline to 210K in July from 218K the prior month. Meanwhile, crude oil is trading a touch above Friday's close at just over $116/bbl and this is containing USDCAD gains as well. The pair opened the London session near 1.0660 and was sitting just a touch higher near 1.0665 at the close. Upcoming Economic Data Releases (NY Session) Prior Estimate 8/11/2008 12:15 GMT CA Housing Starts JUL 217.8K 210.0K 8/11/2008 12:30 GMT CA New Housing Price Index MoM JUN 0.0% 0.1% 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.