Forex trading headlines from the European morning session 24 June
News:
- BOE’s Carney says pace of interest rate increases more important than the timing of initial hike
- Carney says his Mansion House comments on interest rate rises were his views
- BOE’s Bean says early stimulus withdrawal may risk productivity gains
- BOE’s Carney says timing of interest rate rises will be driven by data
- Forward guidance was a supporting factor in the recovery
- BOE’S Carney says pace of UK job creation remains strong
- Carney: We want to see jobs, growth, income and spending growing
- Lack of supply one cause of housing market issues says Carney
- Abe: Sales tax hike aimed at meeting rising costs of social welfare
- Japan to cut corporate tax rate to below 30% in phases over next several years
- Japan’s Abe says positive economic cycle appearing driven by corporate revenues
- IFO’s Wohlrabe says ECB measures have had no major impact on German economy
- Putin asks parliament to revoke Ukraine military intervention resolution
- Merkel tells her party that Friday is the deadline for more Russian sanctions
- EU’s Juncker says he seeks a “fair deal” with UK
- European fund buys EURAUD
Data:
- German IFO business climate June 109.7 vs 110.2 exp
- Italian wage inflation May mm +0.1% vs 0.0% prev
- Swiss trade balance May CHF +2.774 bln vs +2.448 bln prev
- UK BBA mortgage approvals fall in May to 41,757 vs 41,934 prev
- Nikkei closes up 0.05% at 15,376.24
No prizes for guessing who and what has dominated the landscape this morning.
Prior to Carney & Co stepping up we had a weaker than expected German IFO that simply gave earlier euro buyers a chance to buy again at better levels. EURUSD dipped to 1.3593 from 1.3607 only to resume its path to 1.3628 while EURJPY fell to 138.45 before another test of 139.00 leaving USDJPY in a range of 101.85-95 after failing to hold above 102.00 again.
EURGBP came back below 0.7990 but then also had a look above 0.8000 before Carney began his testimony and the early dovish tones from him and dep gov Bean gave the pound a slap to 1.6980 support from 1.7015 and 0.8025 from 0.8002.
Later questioning on his recent comments about interest rate rises this year provided another small jolt initially but when it transpired that his views were shared by MPC we saw some short covering to 1.7002 and 0.8008 before the next wave of pound sellers reappeared to 1.6985 and 0.8017. Other GBP pairs have experienced similar swings
Elsewhere AUDUSD came under continued pressure to 0.9393 from 0.9410 on EURAUD buying interest but decent bids at 0.9390 have held thus far only to see rallies above 0.9400 sold into. NZDUSD had the morning off as did USDCAD although both currencies will have witnessed some GBP ripple effect.
A decent session that has challenged a few key levels and provided good opportunity once again for the shorter-term traders.