Forex trading headlines from the European morning session 12 August
News:
- Ukraine military spokesman says no humanitarian aid will be allowed in for the moment
- German economic ministry sees GDP slowdown in Q2
- US sec of state Kerry says they are prepared to consider additional help for Iraq
- IEA cuts estimate for 2015 global oil demand by 90,000 bpd to 1.32mln bpd
Data:
- German ZEW economic sentiment August 8.6 vs 18.2 exp
- Italian CPI EU-norm final m/m -2.1% vs -2.1% exp
- French current account June EUR -3.1bln vs -3.3bln prev
- Japanese industrial output revision June -3.4% vs -3.3% prev
- Nikkei closes up 0.2% at 15161.31
Weaker than expected ZEW data has given the euro a wobble or two this morning and concerns over the Russian move to supply humanitarian aid to Ukraine has also provided additional multi-markets jitters
Early pressure on the euro saw EURUSD drifting to 1.3360 and EURGBP down to 0.7965 as GBPUSD bids at 1.6750 provided a good base for cable, bouncing from 1.6757 to 1.6783
Weaker than forecast German ZEW saw a further knock lower to 1.3336 and 0.7946 but it’s been a slow grind with EURJPY also chewing through bids to post 136.51. The DAX has posted lows around 9130 twice so far adding to the pressure. Option expiries for $1.8bln between 1.3340-50 also casting a shadow
USDJPY found a few bids early on as the Nikkei found some support but gains above 102.35 have been capped by EURJPY sales and a cluster of options expiries near by
AUDUSD has been stuck around 0.9260 again, NZDUSD around 0.8425 and USDCAD around 1.0940
A scrappy session but nothing more than we expect nowadays
