Forex trading headlines from the European session 25 August
News:
- Merkel says Ukraine crisis affecting Germany economy but still expects good growth this year
- IFO’s Wohlrabe says Germany is still a long way from recession
- French PM to present new government tomorrow
- BOJ’s Kuroda confident that ECB will act if deflation threat appears
- Reports of fresh fighting near Ukraine/Russia border
- Russia’s Lavrov says Ukraine told to expect another aid convoy
- European 10 year bond yields hitting record lows
- The countdown to the Scottish referendum continues
Data:
After some wild swings in early Asia we’ve seen a steady grind lower for the US $ as traders try and take on board the Jackson Hole effect.
No London and no data apart from a weaker than expected (but unsurprising) German IFO has kept the euro on the back foot overall but EURUSD has had a look above 1.3200 from 1.3180 without holding so far .
GBPUSD has also moved up from 1.6570 to tease 1.6600-10 offers but capped at 1.6598 as I type while EURGBP has failed to break through bids at 0.7950 after a move down from 0.7970
USDJPY has found sellers both in the core and yen pairs after failing in Asia to breach the 104.50 barrier and hasn’t needed much help in moving lower to 103.87 from 104.20 with EURJPY dipping to test bids/support at 137.00 from 137.60
USDCHF too has found offers into 0.9185 too much to breach and the session has a seen a drift lower below 0.9160 from Asian highs of 0.9180 with EURCHF also falling to test decent support at 1.2085
AUDUSD has found support on the crosses but has found further gains above 0.9325 too much while NZDUSD has been parked mostly around 0.8360 having been sent packing in Asia.USDCAD has spent most of the session around 1.0950 still very much parked in the 1.09-10 range
So it’s back to our friends across the pond to pick up the baton and see what they make of Jackson and the hole it’s left behind.
