Forex trading headlines from the European morning session 17 June
News:
- ZEW economist says ECB measures have had a positive impact as a signal
- Brent up as Iraqi refinery goes offline
- Reuters poll raises UK GDP estimates
- Investors are focused on seeking yield says ECB’s Linde
- Swiss govt sees 2014 GDP growth at 2.0% vs 2.2% prev forecast
- Gold in retreat as resistance holds
Data:
- May UK CPI 1.5% vs 1.7% exp y/y
- June German ZEW economic sentiment index 29.8 vs 35.0 exp
- Eurozone ZEW economic sentiment June 58.4 vs 59.6 exp
- UK PPI May input prices m/m nsa -0.9% vs +0.0% exp
- Italian global trade balance April EUR +3.505 bln vs +4.273 bln exp
- Swiss producer & import prices May m/m +0.1% vs -0.1% exp
- Nikkei closes up 0.29% at 14,975.97
The morning was dominated by a GBP flurry following the UK inflation data which came in below expectations.
Cable dropped to the strong support at 1.6940 from 1.6975 sending EURGBP from 0.7987 to test the offers between 0.8000-10 but both levels held to retrace to 1.6990 and 0.7985. Similarly pound pairs dipped then rallied as traders gave up on a second wave of selling.
EURUSD has mostly been around 1.3565 caught in the cross fire once again while USDJPY failed to hold above 102.00 again but gone nowhere and USDCHF has been pinned around 0.8980
AUDUSD continued its dip on the back of the RBA minutes but found buyers on the break below 0.9350 and has limped back to 0.9355 as I type while NZDUSD has had a quiet morning at the office around 0.8665 after the bids at 0.8550 held firm. USDCAD similarly has been quiet around 1.0855 having bounced from 1.0835 support
Enough going on to provide opportunity but don’t get too greedy.
