Forex trading headlines from the European morning session 23 June
News:
- Canada’s Oliver says interest rate shock is unlikely and not the biggest threat to markets
- Canada’s Oliver says they are on the road to a surplus
- BOJ’s Kuroda says easing having intended effects
- BOJ’s Kuroda says govt target of 2% growth is ambitious but not impossible
- EU draft summit document wants to see bold structural reforms
- BOE survey shows lenders expecting lower household loan approvals in Q3 2014
- ECB says there will be regular AQR and stress tests
- UK’s Osborne says its good that Carney is seeking to communicate the path of interest rates
- Naftogaz says Ukraine is fulfilling all its transit obligations for transporting Russian gas to Europe
Data:
- Eurozone Markit mftg flash PMI June 51.9 vs 52.2 exp
- German Markit mtg flash PMI June 52.4 vs 52.5 exp
- French Markit mftg flash PMI June 47.8 vs 49.5 exp
- Nikkei closes up 0.13% at 15,369.28
It’s been a gentle start to the week but once again a session that’s provided some opportunity for the intra-day traders
EURUSD and GBPUSD both started with a biddish tone at 1.3610 and 1.7040 but with little further buying interest European traders were quick to start selling and we’ve chewed our way down to 1.3575 and 1.7015 before finding a few buyers again
Weaker than expected PMI data had helped the euro sellers but EURGBP has held support lines around 0.7975 again while EURJPY still trades tightly with decent bids and offers prevailing. USDJPY had a little run lower to 101.82 from 101.92 as Nikkei futures dipped but still no serious challenge as yet on the bids at 101.70 and below.
The loonie had another decent session with USDCAD posting new recent lows of 1.0716 as fin min Oliver dimissed any probs with inflation and hinted that rates were likely to edge up over the next few years. Bids into 1.0700-1o have provided a decent platfrom though for a bounce to 1.0733 as I type
The aussie $ has held its Asian gains with AUDUSD supported at 0.9430 but still finding the barrier at 0.9450 a step too far while NZDUSD similarly still has offers at 0.8750 providing a cap.
A less than exciting start to the week then but a few pips to be had nonetheless