Forex trading headlines from the European morning session 29 July
News:
- BOE’s Broadbent says current account deficit does not pose a threat to UK economy
- More on the Fonterra announcement
- Fonterra announce milk pay-out price of NZ$6/kg
- BOJ’s Ishida says companies are more actively passing on higher costs to consumers
- Spain to revise growth forecasts up to 1.5% for 2014 and 2.0% for 2015
- Microsoft in trouble in China
- Russian foreign ministry says latest UN report on human rights is hypocritical
- Russia cancels weekly bond auction
- Goldman’s Blankfein says Europe needs reforms of fiscal and labour policies to avoid new crisis
- EURGBP demand adds to pound selling pressure
Data:
- UK mortgage approvals June 67.196k vs 62.6k exp
- June 2014 UK BOE consumer credit 0.42bn vs 0.80bn exp
- German import prices June m/m +0.2% as exp
- Nikkei closes up 0.57% at 15,618.07
The pound has been the main mover this morning as cable offers and EURGBP demand have given it a slap lower while the kiwi remains in wobble-mode after diary giant Fonterra cut its price for milk.
Early action saw NZDUSD fall further to 0.8507 from 0.8525 on the Fonterra factor but bids down around 0.8500 have prevented further declines so far with a rally back to 0.8522 before finding gap sellers.
USDJPY has looked perky on a stronger Nikkei performance again but has failed to chew through the strong offers into 102.05 as yet but demand seen in the dips below 101.90 still. USDCHF also underpinned again but similarly can’t find the extra legs to break up through 0.9050-55
EURUSD has been pinned down around 1.3432 despite some decent cross demand in the dips which saw it post 1.3444 only to retreat again which tells us that the core pair has decent offers in the rally.
But the main focus has been on the pound which has come under pressure after weaker consumer credit negated stronger mortgage data. GBPUSD had a run up to 1.6994 just ahead of the strong 1.7000 offers from 1.6970 in a mixed box of frogs at the time which saw EURGBP back looking at strong bids into 0.7900. Cue some month-end/corp buying on that pair and we saw a move to test offers at 0.7925 with cable falling to test decent support around 1.6950-55, holding so far.
AUDUSD has found support in the dips to 0.9390 as AUDNZD buyers capitalize on the kiwi weakness while USDCAD has mostly had the morning off arounf 1.0810 hemmed in by decent support below 1.0800 and offers at 1.0825
Enough going on to provide some opportunity as main focus remains firmly on the FOMC tomorrow.