London Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jan 22 09 13:28 GMT |

The risk appetite witnessed in the latter half of the NY session yesterday continued to wane in London overnight. Overseas marts rallied modestly and up about +1% in a dismal follow-through to the more than +4% gains in US shares. Risk trades in FX were commensurately punished and the yen crosses headed lower. USD/JPY lost about -40 points in the session towards 88.80/90 while EUR/JPY witnessed a more pronounced -60 pip decline into the 115.50/60 zone. EUR/USD was practically unchanged near the 1.30 pivot as most of the price action was expressed via higher yen. Poor economic data out of the UK weighed heavily on the pound. Manufacturing sentiment collapsed to -64 from -60 in the worst print since 1980. Meanwhile, the Confederation of British Industry’s monthly report showed total orders in January at -48, down from -35 the prior month and the weakest result since 1992 to boot. GBP/USD was crushed more than -170 pips as a result and sitting near the 1.3740/50 zone. Ostensibly there are bids into the 1.3700 level and as such we would expect good support on dips into that area. Upcoming Economic Data Releases (NY Session) prev est 1/22 13:30 GMT CA Leading Indicators MoM DEC -0.70% -0.6% 1/22 13:30 GMT CA Retail Sales MoM NOV -0.90% -2.0% 1/22 13:30 GMT CA Retail Sales Less Autos MoM NOV -1.10% -1.50% 1/22 13:30 GMT US Housing Starts DEC 625K 605K 1/22 13:30 GMT US Building Permits DEC 615K 600K 1/22 13:30 GMT US Initial Jobless Claims 17-Jan 524K 543K 1/22 13:30 GMT EC ECB's Tumpel-Gugerell Speaks in Brussels 22-Jan 1/22 15:00 GMT US House Price Index MoM NOV -1.10% -1.20% 1/22 15:30 GMT CA Bank of Canada Monetary Policy Report 22-Jan 1/22 16:00 GMT US DOE U.S. Crude Oil Inventories 16-Jan 1144K 1400K 1/22 16:00 GMT US DOE U.S. Gasoline Inventories 16-Jan 2068K 1800K 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.