Forex trading headlines from the European morning session 8 Sept
News:
- IMF’s Lagarde doesn’t see euro overvalued vs USD
- Japan’s Hamada says yen looks like it will weaken further
- Japan’s Miyashita says GDP rose in H1 from the previous period
- OECD leading indicator unchanged at 100.5 in July
- Spain facing deflation risk says OECD
- ECB’s Lautenschlaeger says banking union helps the monetary policy effect
- EU says Cyprus hasn’t sent foreclosure law to Troika
- Europe’s door is always open to giving Greece more money
Data:
- German trade balance July EUR +23.4bln vs +16.8bln exp
- UK Halifax house price index August +0.1% vs +0.3% exp
- Swiss CPI Aug mm 0.0% vs -0.1% exp
- Swiss unemployment rate August 3% vs 3.0 exp
- Japanese economy watchers current index August 47.4 vs 51.3 prev
- Eurozone Sentix investor confidence index Sept -9.8 vs +1.4 exp
- Bank of France business sentiment Aug 97 vs 95 exp
- Nikkei closes up +0.23% at 15,705.11
The overnight gap lower on GBP had European traders running for the Scottish exit doors as well and we’ve seen further selling of the pound this morning.
GBPUSD opened up at 1.6205 but it wasn’t long before UK clearers were again selling aggressively and the overnight lows of 1.6165 were under threat, eventually giving way to clear out 1.6150 bids, wiping its feet at 1.6125-35 then finally running into sterner support at 1.6103
EURGBP has been up to 0.8038 having finally chewed through the 0.8025 offers while overall the pound has taken a beating with GBPCHF down to 1.5005, GBPAUD 1.7214 and GBPJPY 169.33
Elsewhere much of the movement has been GBP-pair related with EURUSD initiall falling to 1.2930 but then steadying around 1.2945 while USDJPY tested support at 105.00 from 105.15 before cross-buying gave it a lift to 105.25
AUDUSD was holding above 0.9350 on cross plays but finally popped lower to 0.9341 while USDCAD has climbed to take out a few more offers to 109.10 but since retreated. NZDUSD has held support at 0.8300 but rallies look weak.
So there it is, the pound remains in the spotlight and the jury’s still out on whether it’s all over-done. But we can be sure of further voltaility whichever way the vote goes.
