Forex trading headlines from the European morning session 27 May
News:
- ECB’s Nowotny says there is a discussion toward cutting rates next week
- ECB’s Nowotny says Eurozone inflation to stay significantly below 2% in 2014
- ECB’s Nowotny says too low inflation in Eurozone is a problem
- Russia’s Lavrov calls for an end to violence in Ukraine without delay
- Ukraine rebels say they have around 30 dead after govt offensive near Donetsk
- EU’s Dijsselbloem says Europe needs growth not “based on cheap credit”
- IMF expects Spanish economic recovery to continue over the medium term
- IMF’s Lagarde says progress on reforming banks has been too slow
- Up and down and up and down we go
- Gold still on the retreat
Data:
- UK BBA mortgage approvals April 42,173 vs 45,045 prev
- Swiss trade balance April CHF +2.425 bln vs +2.052 bln exp
- Swiss Q1 NFPs 4.192 mln vs 4.189 mln prev
- Italian consumer confidence May 106.3 vs 105.0 exp
- French consumer confidence May 85 vs 85 exp
- Nikkei closes up 0.23% at 14,636.52
- Shanghai Composite Index closes down 0.34% at 2034.64
Doesn’t time fly by when you’re busy, and we’ve been busy enough indeed this morning as the pound has dominated the landscape after first enjoying a rally only to come under some intense pressure as volume flows and techs both conspired to add weight.
Cable had an early run up from 1.6850 to test technical resistance and offers above 1.6885 but coincided with strong bids on EURGBP at 0.8080-85 and it was about-turn in solid fashion to post 1.6813 and 0.8117 as month-end flows, weaker mortgage approvals, Pfizer withdrawal all added to trigger a few stops. Overall the pound lost ground across the board but decent demand in the dips still sees the bulls not beaten yet.
The euro’s had a decent morning in the end after a few early session wobbles and apart from EURGBP on the rise we’ve seen EURUSD up to 1.3669 before falling back to 1.3635 and EURJPY back to 139.12 from 138.82 lows in generally positive USD sentiment led trading with USDJPY holding in at 101.72 to launch another, so far, failed attack on 102.00.
USDCHF has had another run back to 0.8965 after holding 0.8940 while USDCAD has been a little subdued on the back foot around 1.0840 after finding corp support at 1.0835.
AUDUSD and NZDUSD have both been in tight ranges, a little undermined, caught in a bit of cross play cross fire.
A good session with the UK traders back at their desks making up for lost time, so let’s hope for more of the same from our cousins across the pond
