Forex trading headlines from the European morning session 29 Aug
News:
- German fin min Schaeuble says the ECB can’t fight deflation
- Russia’s Lavrov says that Western allegations that Russian military are in Ukraine is “conjecture”
- Putin says Russians and Ukrainians are ” practically one people”
- Russian energy minister says there will be talks with EU and Ukraine in the coming weeks
- Japan’s GPIF says value of assets up to JPY 127.2 trln at end-June
- Reuters poll has RBA keeping interest rates unchanged next week
- Kiwi ignores Fonterra downgrade by S&P
- Russian rouble hits all time lows vs USD
- EONIA in negative territory for the first time
- ONS says UK business investment data postponed
Data:
- Eurozone CPI flash y/y +0.3% vs +0.3% exp
- Eurozone unemployment rate July 11.5% as exp/prev
- UK Nationwide house prices Aug m/m +0.8% vs +0.1% exp
- Italian CPI flash Aug m/m +0.2% vs +0.1% exp
- Italian final Q2 GDP qq -0.2% as exp/prev
- German retail sales July m/m -1.4% vs +0.1% exp
- Swiss KOF indicator Aug 99.5 vs 97.8 exp
- French producer prices July m/m -0.3% vs 0.0% exp/prev
- Italian unemployment rate July 12.6% vs 12.3% exp
- Japanese housing starts July y/y -14.1% vs -10.5% exp
- Japanese construction orders July y/y +24.4% vs +9.3% prev
- Nikkei closes down 0.23% at 15,424.59
Apart from Ukraine the main focus this morning was on a raft of data including the Eurozone CPI but none has really set the markets alight and we’ve seen some scrappy two-way stuff instead.
GBPUSD had a look above 1.6600 again on better house price data but the offers between 10-20 were once again strong enough to repel and we’ve been back to 1.6585 with EURGBP month-end buying providing a few more cable sellers as I type
EURUSD has been up to 1.3196 on cross buying and slightly stronger core inflation but mostly its been 80-90 with EURCHF and EURJPY also finding sellers in the rallies
USDJPY has chewed its way up to 103.99 from 103.80 but USDCHF has been on the back foot again around 0.9140-50
AUDUSD and NZDUSD have also given up some Asian gains while USDCAD is still drawn to the bids around 1.0840 and sits delicately poised.
More data from across the pond and month-end flows in the fixings later may yet have impact.