Forex trading headlines from the European morning session 15 July
News:
- ECB’s Praet says effect of new measures will be reflected in the euro
- BOJ’s Kuroda says excessively strong yen has corrected considerably
- BOE’s Carney says his early interest rate rise comments were intended to make markets more aware of risks
- BOE’s Carney says inflation expectations are extremely well anchored
- BOE’s Carney repeats that the housing market remains the biggest risk to UK recovery over the medium term
- BOJ’s Kuroda expects Japanese economy to continue exceeding its potential growth rate
- Juncker set to get the nod in as EU Commission president
- EU’s Juncker says EU-US trade talks will fail if both sides do not show more transparency
- BOE’s Taylor says the tendency of markets to ignore geopolitical risks now is “just bizarre”
- BOE’s Carney says potential higher leverage ratio would have most marked effect on building societies and investment banks
- Job vacancy at the GPIF – Must take risks and must make profits
- UK’s Hague stands down as Cameron gets out the knives
Data:
- June 2014 UK CPI 1.9% vs 1.6% exp y/y
- July 2014 German ZEW economic sentiment index 27.1 vs 28.0 exp
- UK PPI input prices nsa June m/m -0.8% vs +0.1% exp
- May 2014 UK HPI 10.5% vs 9.9% prior y/y
- Italian CPI June final m/m +0.1% as exp/prev
- Swiss producer import prices m/m 0.0% vs +0.1% exp
- Nikkei closes up 0.64% at 15395.16
It’s been a good session for the pound bulls as stronger than expected inflation data sent the Queen’s currency soaring then stayed bid as weaker German ZEW saw the euro have a bit of a wobble
GBPUSD had been looking a little sorry for itself early-on with bids around 1.7060 being tested but then came a small rally to 1.7075 into the data as short traders rightly banked some profit. Cue data cue surge to 1.7140 before a small retreat and now 1.7150 as I type.
EURGBP had failed to take out the offers at 0.7985 that I’d been highlighting recently and on the data release plummeted from 0.7975 to 0.7945 and further 0.7927 since. Overall the story on pound pairs paints a similar picture.
The euro came in for a slap on weaker German ZEW data and we saw EURUSD test bids around 1.3590 from 1.3607 prior before returning to from whence it came. Euro pairs also saw similar price moves.
AUDUSD has been on the back foot but has held on support/bids starting at 0.9360 while NZDUSD has been pinned around 0.8800 with support in the dips once again. USDCAD has had a little rally up to 1.0742 after holding 1.0700 but once again 1.0750 has proved a step too far.
A lively enough session with plenty of opportunity and with Yellen coming up later we’re not slowing down anytime soon.
