Forex trading headlines from the European morning session 11 July
News:
- EU’s O’Connor says they are confident the Portugese banking problems will be managed
- Spain’s Latorre says data shows Spanish recovery is stronger than expected
- Market reaction to Espirito highlights lack of faith in EU plans to shore up banks
- ECB to tell banks that test results are very close to publication
- Brent crude oil falls on jump of IEA stock data
- IEA says markets look well supplied but OPEC supply risks ” remain extraordinarily high”
Data:
- UK construction output May m/m -1.1% vs +1.2% prev
- German HICP June final m/m +0.4% vs +0.4% exp
- French current account May EUR -3.1bln vs -2.3 bln prev
- Nikkei closes down 0.34% at 15,164.04
We’ve had tight ranges again but there’s a distinct air of dancing on hot coals as sentiment switches on a whim and with equity markets still on the back foot
GBPUSD had an early rally to 1.7150 from 1.7125 only to fall back to 1.7120 after weaker construction data but we’ve been back around 1.7140 as offers come into EURGBP with the euro taking its cue from equity markets again.
EURUSD has been up to 1.3625 as markets opened higher but back down to 1.3603 as BES shares have fallen again after trading was resumed this morning and an 11% intial rise erased.
USDJPY and USDCHF have both been trading tightly but nervous still around 101.30 and 0.8925 while AUDUSD is pinned around 0.9400
NZDUSD has looked perky again at 0.8820 with decent bids in the dips while USDCAD remains on the back foot still at 1.0636 but with more bids noted down to a 1.0600 barrier defence.
Nothing much on the data horizon apart from Canadian jobs but we should expect some continuation of these fragile markets before the week is out.
