Forex trading headlines for the European session 30 June 2014
- May Japan vehicle production 6.1% vs 3.4% prior y/y
- June Japan small business confidence 47.3 vs 46.6 prior
- May Japanese housing starts -15.0% vs -10.5% exp y/y
- May German retail sales -0.6% vs 0.7% exp m/m
- May eurozone M3 money supply 1.0% vs 0.8% exp y/y
- May Italian PPI -0.1% vs -0.3% prior m/m
- June 2014 Italian HICP flash 0.2% vs 0.4% exp y/y
- May UK BOE consumer credit 0.74bn vs 0.70bn exp
- June eurozone HICP flash 0.5% vs 0.5% exp y/y
- European Commission throws Bulgaria a €1.67bn lifeline
- It’s highly uncertain that Japan can meet growth targets says Fitch
- Germany’s Schaeuble wants to close loopholes in financial market regulations
- China’s SAFE says Chinese export demand will improve in 2014
- EUR/USD at the highest since early June and brings 200 dma into focus
- Spanish growth accelerated in Q2 says finance minister Guindos
- Monetary policy cannot replace political reforms says Schaeuble
- Irish bank lending still weak but showing signs of a turnaround
- Euro area has enough liquidity from ECB says ex ECB’s Asmussen
The euro was sitting pretty above 1.3640 first thing this morning and not even the shoddy German retail sales figures could put a dent in old teflon. The latest round of eurozone inflation data was ready to add a spark but was unchanged for june at 0.5%. The only bright spot was that the core ticked up a point and that meant that the bears held off further selling and the bulls pushed them up to 1.3663 and just ahead of the 200 dma. We fell back to the 1.3650 level and so far are holding that line fairly well.
It’s a case of flows, flows and more flows dominating today as we’ve seen drops and spikes in the pound and euro.
GBP/USD tested the low 1.7000’s falling to 1.7009 as EUR/GBP streaked up through 0.80 to 0.8027 as the UK blood money went over to Europe. Talk of fix interest at the midday fix saw us hitting the highs at 1.7046 with further interest touted for the bigger London fix at 16.00 gmt+1
USD/JPY notched up a new low at 101.24 after some jitters in the Nikkei late on but then as that stabilised we rode back up to offers at 101.45 which held. We slide into the US session at 101.35
AUD/USD is still playing tightrope walking with the 0.9400 level as it fails to knock out the 0.9445/50 highs and barriers again. We’re only marginally underneath 0.9400 but there might be some longs who are finding the lack of a break higher playing on their patience
We’re likely to see the flows continue today and probably into tomorrow as the grand accounting adjustments take place
