The forex trading headlines from the European morning session

  • Eurogroup meets to discuss Cyprus bail-out amidst reports of additional amounts requested by Anastasiades
  • Germany says no talk of extra monies and not negotiable from EUR 10 bln in any case
  • Cyprus gold reserves seized by creditors
  • Japanese econ min Amari says it may take a little longer for weak yen to benefit economy
  • Japan PM Abe says agreement reached with US on joining TTP
  • Eurozone industrial production +0.4% vs +0.1% exp but prev revised down to -0.6% from -0.4%
  • UK construction output m/m +5.5% y/y -7%
  • German wholesale price index march -0.2% vs -0.5% exp +0.1% prev
  • Nikkei closes 0.47% lower at 13,485.14 but still 5.1% up on the week
  • French trade deficit feb EUR-4.9bln vs EUR-5bln prev
  • Spanish CPI march m/m +0.4% vs +0.3% exp +0.2% prev
  • Austria to keep bank secrecy laws
  • Italian CPI march +0.2% vs +0.3% exp +0.3% prev
  • Gold selling triggers stops below USD 1552

It was risk-off time again as the euro came under renewed pressure amidst reports that President Anastasiades was asking for more money. This coupled with some end of week profit taking on EURJPY following on from USDJPY’s failure to break 100 or even hold gains gave traders reason enough to give the euro a kicking.

EURJPY opened up around 130.45 but was soon testing reported strong demand at 130.00 and despite a brief rally we were soon through the next buy orders at 129.75 and 129.50. EURUSD wiped its feet at sold support around 1.3080 but then fell again under the strain and unhelpful economic data. EURJPY continued down to next key support at 129.00 and USDJPY dipped below 99.00 only to find more japanese buyers. Then came denials from the Eurogroup meeting that Cyprus had asked for, or indeed was getting, anything more than the EUR10 bln already promised.

Cue rally to 129.55 and 1.3055 from lows of 1.3041 and since then we’ve seen a further gradual rise in quiet trading.

EURGBP also came lower with cable lagging behind EURUSD and we’ve seen recent lows of 0.8491 while GBPUSD finally chewed its way through good support around 1.5380 to fall to 1.5343 before rallying on the halt of the euro decline.

AUD and NZD also lower on the risk-off sentiment but little of note elsewhere apart from gold continuing its fall back toward the recent lows of USD1540, and we now await US data and Mr B for our next scraps from the table.