Forex trading headlines from the European morning session 28 May
News:
- ECB’s Mersch says next week’s meeting could produce a combination of different measures
- ECB’s Mersch says they would cut deposit rate should benchmark be reduced
- China’s MOF says it will speed up budget spending to support economic growth
- BOJ reports FY2013 operating profit of JPY 1.28 trillion
Data:
- German unemployment change May sa +24k vs -15k exp
- German import prices April mm -0.3% vs +0.1% exp
- Eurozone M3 money supply annual growth +0.8% vs +1.1% exp
- Swiss Q1 GDP qq +0.5% vs +0.6% exp
- Eurozone economic sentiment May 102.7 vs 102.2 exp
- French producer prices April -0.1% vs -0.4% prev
- UK CBI distributive trades survey May +16 vs +35 exp
- US MBA mortgage market index w/w 362.2 vs 366.5 prev
- Italian business confidence May 99.7 vs 99.6 exp
- Swiss UBS consumption indicator April 1.72 vs 1.84 prev
- Nikkei closes up 0.24% at 14,670.95
- Shanghai Composite Index closes up 0.77% at 2050.23
Spooky because apart from the pound everything else has been pinned on a tight axis as if waiting for someone to fire the starting gun.
EURUSD has been 1.3620,supported by decent barrier option defence of 1.3600, USDJPY 101.90 and USDCHF 0.8980 but all seem poised for a move. Maybe Europe is just off for half-term hols so perhaps early US desks can give it all a nudge
Anyhow, back to the once-perky pound and we got off to an early start as solid EURGBP buying from 0.8105 to 0.8125, no doubt month-end related, gave cable a cap around 1.6810 where it had camped in Asia. Strong technical support and bids to match around 1.6775 gave it a breather but then it popped and we’ve since been down to 1.6746 with EURGBP on the rise again but failing at the next set of decent offers at 0.8135.
Overall the pound has had a miserable morning with good selling in GBPJPY , GBPCHF and GBPAUD and the trend looks set to continue
The kiwi continued to feel the heat that began in Asia and NZDUSD has breached good support at 0.8500 with AUDNZD buying adding to its woes but helping to give AUDUSD some support in tight ranges still, while the loonie once again found decent corp demand in the dip to 1.0840.
EURUSD coming down now as I type, as is GBPUSD again, so let’s see what happens
