Forex trading headlines from the European morning session 18 August
News:
- UK govt and BOE both deny there is any deal to keep rates low until 2015 election
- Russian foreign ministry says ” certain progress” achieved in Berlin talks on Ukraine
- Russia’s Lavrov says there have been no positive results from Berlin talks
- Ukraine’s Klimkin says there has been moderate progress in talks with Russia’s Lavrov
- Ukraine says refugee bus convoy hit by rebel missile
- Ukraine separatist leader denies they are responsible for missile attack on refugee convoy
- Merkel gets invited to Kiev
- Bundesbank says German outlook dampened for H2 2014
- Eurozone GDP and CPI knocked down in Bloomberg survey
- France missing its 2014 deficit target will be credit negative for it and Europe says Moody’s
- Bank of Spain reports June’s non-performing loans at 13.1% vs 13.4% prev
- Russia widens rouble basket range to 9 roubles from 7
Data:
The Carney week-end comments that we reported here and here have given the pound a boost but we saw consolidation this morning and not further gains as the jury remains well and truly out.
GBPUSD has mainly been around 1.6730 while EURGBP has been pinned around 0.8000 with EUR 800m in option expiries at 0.8010 and EUR300m at 0.8000 rolling off today
Elsewhere it’s also been another slow start to the week with EURUSD stuck around 1.3390, USDJPY 102.45 and USDCHF at 0.9040. Understandable given Friday’s fun n games and the ongoing uncertainty in Ukraine and Middle East.
AUDUSD looks well supported still but now has some decent offers at 0.9040 and more at 0.9050 while NZDUSD and USDCAD have mostly had the morning off again.
Lack of data today keeps geo-political events in the forefront of market considerations, and traders remain understandbly still cautious, or on the beach with their buckets and spades