Forex trading headlines from the European morning session 16 July
News:
- Euro loses some appeal in global forex reserves
- ECB’s Nowotny says low inflation and low growth to stay for some time
- BOJ monthly report says Japanese economy is expected to continue its moderate recovery
- EU readies further Russian sanctions
- ECB’s Klaas Knot rags on France and Italy
- EU bank rules document shows opposition to prop trading ban
- Chinese construction company warns of bond default
- Nomura pushes back forecast for additional BOJ easing
Data:
- June 2014 UK claimant count -36.3k vs -27.0k exp
- May 2014 eurozone trade balance 15.4bn vs 16.5bn exp
- Italian trade balance May EUR +3.676 bln vs +3.517 bln prev
- Spanish trade deficit May EUR -1.76bln vs -27.5mln a year ago
- Swiss ZEW investor sentiment July +0.1 vs 5.0 exp
- US MBA mortgage market index 341.1 vs 353.9 prior
- Nikkei closes down 0.1% at 15,379.30
The market has shown little love to the euro this morning despite strong equity market gains and we’ve seen yesterday’s slide continue.
EURUSD chewed its way through decent bids between 1.3540-50 and we’ve been down to 1.3530 but there’s plenty more bids lining up down to the 1.3500 barrier option interest.
EURGBP drifted off to test the 0.7900 barrier from 0.7915 but then rallied as the pound dropped on weaker jobs/earnings data only to return and take out the level posting lows of 0.7897.
EURJPY has also been on the backfoot taking out strong bids at 137.75 to post 137.63 before stabilizing and the story has been the same in euro pairs pretty much across the board.
The pound had a wobble on weaker earnings/jobs related data which saw cable drop from 1.7135 to 1.7113 before buyers on claimant count improvemnt emerged ahead of decent bids into 1.7100. The rally back to 1.7135-40 was short-lived and we’ve seen a drift back to 1.7125
USDJPY drifted off to 101.63 on a weaker Nikkei close and EURJPY selling but its edged its way up to 101.76 in tight trading still capped by a few offers. USDCHF has continued to make merry to 0.8985 on the back of a weaker EURUSD but it too has run into decent offers.
AUDUSD and NZDUSD have chewed their way higher from lows of 0.7930 and 0.8689 while USDCAD has held support at 1.0750 and currently near session highs at 1.0770.
A decent enough session again and with more to come from across the pond we’re not done yet.
