Forex News | Currency News by Forexlive

• Catalonia calls for govt financing help
• Spain injects 19 billion euros into Bankia
• S&P downgrades Bankia, Banco Popular to junk
• Spain not considering EU help for banks
• BOE’s Weale: Weak GDP strengthens QE case
• Dutch PM: We will never allow eurobonds
• U Mich final consumer sentiment 79.3 vs 77.8 exp
• Greek tourism revenues down 15.1% in Q1
• Van Rompuy: Confident Greek people will make the right choice
• Poll: Syriza 28.5$, ND 26%
• EUR shorts hit record
• USD leads, CAD lags

Small closing changes across the board but there was some movement. Particularly in EUR/USD, which dropped as low as 1.2495, chomping through $1 billion in bids on the. The move was short-lived and inspired short covering to 1.2547. After Europe closed it was a slow bleed lower to 1.2511.

USD/JPY slowly moved to 79.63 from 79.53. Yawn.

Cable trading had some flavor as EUR/GBP orders and barriers spilled over. A quick early move to 1.5690 from 1.5655 was quickly reversed down to a session low of 1.5629 on the Spanish regional problems. Choppy up-move to 1.5650 afterwards.

The commodity currencies are falling late in the day and threaten to close at the lows. USD/CAD broke 1.0300 on two occasions late in the day, breaking a touted barrier at that level. NZD was an outperformer for most of the day but faded to 0.7527 from 0.7583 at the highs.

Gold +$13 to $1572; oil flat at $90.76.

• Buba’s Weidmann: ECB has taken ‘considerable risks’ with measures
• Riksbank Dep Gov Jansson: State finances ‘catastrophic’ in many Europe countries
• German Gfk June consumer sentiment indicator steady at 5.7, from upwardly revised 5.7 in May (prev 5.6) Slightly better than Reuter’s median forecast of 5.6
• French consumer confidence 90 in May, up from upwardly revised 89 in April (prev 88). Slightly better than median forecast of 89
• German FinMin spokesman: Not problematic if next Greek aid tranche delayed beyond end of June
• Portugal opposition Socialists stand by bailout commitments – Opposition leader
• Belgian ForMin Reynders: Greece can’t handle further spending cuts
• Europe’s slump deepens as Kabuki summit falls short - AEP at The Telegraph

European stocks,  gold, oil, US treasury yields all marginally firmer, reflecting a mild risk on backdrop.

EUR/USD up at 1.2585 from early 1.2530, having reached the dizzy heights of 1.2603 at one stage.  The release of slightly better than expected German and French consumer confidence data (see above) lent the single currency early support.

Then as European stocks turned higher, so EUR/USD ground higher.  Talk had sell orders clustered up at 1.2600/20, so it wasn’t overly surprising when we stalled out at 1.2603.  Comments from likes of Weidmann and Jansson (see above) didn’t really help.

Some talk of buy stops through 1.2605 and 1.2625 now.  Barrier option interest remains down at 1.2500. Sell stops just below there and more through 1.2480, before further barrier option interest at 1.2450.

Cable up marginally at 1.5680 from early 1.5650, in line with mild risk on backdrop.

Same with AUD/USD, which is up at .9790 from early .9740.

• Japan April CPI +0.2% YoY
• UK median pay deals increase by 0%
• Fed’s Dudley sounds bit less dovish
• Christchurch shaken by 5.2 earthquake, no damage reported
• Japan EconMin sees no change to BOJ policy of powerful easing
• Italian PM Monti: Germany can be persuaded on Euro bonds
• Regional stocks make small early gains but fall back late to be -0.25% on average
• Gold $1555/oz; Oil $90.75/bbl

AUD/USD was again the most volatile of the major pairs inside a 60 pip range. The market was eying important support in EUR/AUD and heavy trailing stops below 1.2800 and it tried buying the AUD first up in anticipation of a stop-loss fest. This did not materialise despite the negative EUR sentiment, which goes to show how bearish the AUD actually is. Sovereign names sold steadily above .9775 and this capped the pair. The New Zealand earthquake reports caused a late sell-off in thin markets. Ranges: .9723/83

EUR/USD has been stalling ahead of more barriers at 1.2500 but bounces have been very small. The Monti comments regarding Eurobonds did briefly resuscitate the bulls, but it was short lived. Ranges 1.2519/53

USD/JPY saw some modest corporate fixing demand but this was largely offset by some Uridashi redemptions and the net effect was a modest 15 pip rally. Ranges: 79.52/75, EUR/JPY 99.70/100.02.

EUR/CHF saw a nasty spike overnight and Asian trade also saw an unusual 30 pip spike on the back of buying by a UK clearer and some of the bigger hedge funds. Ranges: 1.2008/37

USD/Asia spiked higher in late trade as markets thinned out and dealers covered pre-weekend.

Cable 1.5648/77

• Draghi sees med-term inflation risks, need more time to assess LTROs
• Initial jobless claims 370K, as expected
• Durable goods orders +0.2% vs +0.5% exp, prior revised higher
• Greek poll puts Syriza at 30%
• Another poll puts them in tie at 23%
• Monti: majority of leaders support eurobonds
• Markit manufacturing PMI 53.9 vs 56.0 prior
• China likely to miss lending target
• Fed’s Dudley: Jobs market slowdown would increase chance of easing
• Moody’s affirms France’s AAA-rating
• Rumors of central bank liquidity
• Bankia needs more cash
• Asmussen: ECB crisis role too great
• EUR/CHF takes 70-pip roundrip
• Russian central banker: Greece has plans of parallel currency
• Iran nuclear talks stumble, oil climbs
• NZD leads, CHF lags
• S&P 500 gains 0.1% to 1321

The euro opened at 1.2560 but rallied to 1.2619 in the first hour of trading on rumors of coordinated liquidity provisions and better risk sentiment. The euro chopped within that range, boosted by EUR/CHF, until after the European close when sentiment began to deteriorate on the Chinese lending report and Syriza poll results. EUR/USD fell to 1.2520 but remained above the European low.

USD/JPY slowly ticked higher as US Treasury yields climbed 3-5 bps across the curve despite a record low yield at the 7-year auction. From an open level at 79.35 to 79.60 but below stops at 79.65.

EUR/CHF had everyone scrambling in the early going as it sprinted to 1.2075 from 1.2010. Everything from a fat finger to a research report to rumors of taxing deposits was cited but the price action spoke for itself with the pair drifting back to 1.2014.

USD/CAD took another run at 1.03 but barriers held up and spot is now at 1.0267.

• EU leaders make no progress on Euro bonds, growth or Grexit issues
• Merkel wants Greece to stay in EZ but they must follow memorandum; Hollande wants growth but not all leaders agreed
• ECB Draghi: Euro bonds only make sense with fiscal union
• HSBC May flash PMI 48.7, down from revised 49.3 in April
• China promises fine-tuning to stimulate growth
• New Zealand April trade balance +NZD$ 355million, lower than expected 450 million
• NZ budget sees return to surplus in 3 years, but lot depends on EZ developments
• Asian markets take a break from large scale repatriation of USD
• Regional markets +/- 0.2%, staying pretty flat on average
• Gold $1560/oz; Oil $90.60/bbl

Not much movement overall but it has been a nervy session with the market moving sharply on any news headlines.

EUR/USD opened with a mild bullish feel as dealers sought to continue on with the late-NY recovery. This was stopped in its tracks by the lack of any positive or new headlines from the EU summit. EUR/JPY fell sharply on risk aversion plays but has slowly recovered on the back of the Chinese details on how growth might be sustained. BOK was seen selling USD/KRW in early trade and we can expect to hear that they are selling EUR/USD during the European session. Ranges: EUR/USD 1.2555/98; EUR/JPY 99.69/100.16

AUD/USD and NZD/USD have followed similar lines to the EUR/USD, rally early but reversing on the lack of EU developments. The NZD ignored the trade data and the budget statement and the AUD saw some volatility after the flash PMI, with AUD/JPY falling 20 pips, rallying 40 and then going back to where it was. Ranges: AUD/USD .9720/70, NZD/USD .7481/.7528, AUD/JPY 77.20/70

USD/JPY has had a tight 16 pip range between 79.39/55, moving only on cross flows. Cable traded 1/5673/1.5701, EUR/GBP saw .8005/24 and EUR/CHF was usual 1.2004/14.

• UK April retail sales – 2.3%m/m, -1.1% y/y (from +1.8% m/m, +3.3% y/y), sharpest fall in over 2 years
• MPC Minutes: BOE voted 9-0 to leave rates unchanged, and 8-1 QE at £325 bln
• Italian May consumer confidence falls to 86.5 from 89.0
• BOJ’s Shirakawa: Further rate cuts could bring more demerits
• Ex Greek PM Papademos: No preparations in Greece for leaving Euro
• Japan’s fiscal death is a warning to the West -UK Telegraph
•  Syriza’s Tsipras: No intention of taking Greece out of the Euro
• China Premier Wen: Govt will concentrate on domestic growth
• German Schatz auction
• German Linker auction

A dull start to the European session with EUR/USD floating in a 1.2658-81 range  , but the peace was rudely shattered by a wave of yen buying which caused a collapse in EUR/YEN from  around 100.90 to 100.16,

The move led EUR/USD sharply lower through stops at 1.2640  and the previous year’s lows of 1.2624 to 1.2615.

 Macro and option related names then led a recovery to  1,2654, but the market remains jittery ahead of this evening’s EU summit 

GBP/USD also suffered on the move, aided by very poor retail sales data , plunging through sell stops below 1.5700 to 1.5677 from early highs of 1.5764, but quickly recovered to 1.5734 after release of the MPC minutes shortly after.

 USD/JPY fell back on a wave of cross sales from 79.64 through sell stops below 79.50, to   a low of 79.33

European equities were also on the back foot after the rally of the last 2 days with STOXX , FTSE, CAC and DAX all down around 2%,  and  Italian FTSEMIB  down almost 3%

WTI Crude fell to 90.70 from early highs of  91.37  as disruption fears dissipate amid talk of  a deal between Iran and the West over nuclear inspections

• BOJ keeps target rate unchanged at 0.1% and announces no new easing measures
• Bringing an end to deflation is still a BOJ priority and they will take appropriate steps
• Global economic uncertainties remain high
• Japan April trade deficit Yen520billion
• Fitch downgrade of Japan’s debt unlikely to have major impact on Yen
• Former Greek PM Papademos says Greek EZ exit is being considered
• China Securities Journal reports that China will use fiscal policy to maintain growth
• Regional stockmarkets -1.5% on average
• Frau Merkel still talking same talk pre EU summit
• Gold $1559/oz; Oil $91.40/bbl

Risk-off was the first play of the day, after comments from ex Greek PM Papademos that Greece was considering an EZ exit. EUR/USD and AUD/USD fell swiftly and regional stockmarkiets opened lower. Traders were unwilling to take on much risk ahead of today’s EU summit.

AUD/USD fell towards a barrier at .9750, bounced a few times before finally breaking through and triggering stops to a fresh multi-month low at .9737. A Reuters headline carrying the China Securities Journal report then encouraged a bounce, taking AUD/USD back towards .9775. AUD/JPY selling after the BOJ was the next feature but support in the cross at 77.50 still holds. Ranges: .9737/88

EUR/USD also managed to break below overnight lows but the inability to breach recent lows at 1.2640 does put some questions about the strength of bearish momentum. The AUD and the JPY have been the lead currencies today and the EUR is nervous ahead of the latest summit. Ranges: 1.2644/87

USD/JPY opened near 80.00 but solid supply from Japanese exporters kept the pair soft in early trade and more Yen buying after the BOJ sent AUD/JPY and USD/JPY lower. Expected support still holds at 79.50 but pressure is building ahead of the BOJ press conference in 3 hours. Ranges: 79.49/80.07

Cable 1.5740/71; EUR/GBP .8029/47

• Fmr Greek PM Papademos says preparations being considered for Greek exit
• Merkel and other shoot down eurobonds
• China CIC official criticizes European response to crisis
• Tsipras: rejecting bailout program won’t mean euro expulsion
• US existing homes sales 4.62m vs 4.61m exp
• Richmond Fed +4 vs +11 exp
• Eurozone consumer confidence -19.3 vs -20.5 exp
• EU Summit likely to discuss ESM funds for banks
• EFSF funds approved for Greek banks
• Belgian consumer sentiment at 7-month high
• EU’s Rehn says eurobonds require medium/long-term planning
• Russian central bank diversifying into CAD
• Egan Jones downgrades Spain two notches
• Fitch says LTRO3 growing more likely
• Discount rate minutes show 10 of 12 voting for no change
• Oil down nearly $1 to $91.66 as Iran nuclear deal reached
• S&P 500 +0.05% to 1317
• USD leads, NZD and AUD lag

The market was holding together until Europe closed. Shortly afterwards, the euro fell to a session low and from there it was straight down to 1.2658. The final kicker came from Papademos but the market was looking for the exit before his comments hit.

USD/JPY challenged offers at 80.00 throughout the morning and finally broke though to 80.15 but as sentiment deteriorated, it was right back down to 79.95 ahead of the BOJ decision.

Cable found a bid in US trading, sending the pair to 1.5820 but the market U-turned back to 1.5770 and then down to 1.5740 at the day’s end, ahead of bids at 1.5735.

The early fall in AUD was the market’s tell today. AUD/USD cilmbed as high as 0.9935 in Europe but the bounce that began yesterday was slowly snuffed out and the pair touched a 2012 low of 0.9787 near the end of the day.

Gold was choppy, climbing to $1590 then plunging to $1561.

• Fitch cuts Japan’s long term rating to A+ with a negative outlook
• IMF’s UK review… BOE should cut rates and introduce further QE
• UK April CPI +0.6% m/m, +3.0% y/y (expected 0.6% and 3.1%), lowest y/y since Feb 2010
• OECD says Fed shouldn’t abandon QE
• Secret Eur 100 bln aid props up Greek Banks
• Spanish bank losses could be as high as E260 bln - UK Telegraph
• Facebooks 11% fall.. Fingers point to Morgan Stanley
• JP Morgan losses may exceed $7 bln- UK Independent
• Germany’s Merkel:  Need to create a EU wide framework to rescue banks prone to systemic risk
• Spanish Letra auction
• EFSF Auction

EUR/USD  was sitting around 1.2788  when i sat down this morning with the tone set for a mild bit of risk-on after  Asian bourses picked up in a continuation from NY.

Early buyers  eventually took out offers ahead of 1.2800 with the BIS seen on the bid, but the move stalled into good offers  (reportedly ACB) ahead of 1.2810, Poor Spanish auctions  and weaker EU GDP forecasts from the OECD led  to some risk aversion and a slip back  to lows of 1.2742.  Offers remain up around 1.2810 with buy stops up through 1.2830 and 1.2855. Bids now lie towards 1.2725 with some sell stops just below.

GBP/USD, picked up from early lows around 1.5810 on the back of some Middle Eastern buying but failed to penetrate through sizeable offers ahead of 1.5850 (Talk of Reserve Bk of India selling in the 1.5840′s). April CPI disappointed with a lowest y/y reading for almost 2 years and the pair slipped back to  1.5764 with the EUR/USD.

 EUR/GBP nosed up  on some UK clearer buying through heavy offers around 0.8100 but failed to hold the gains , logging a high of 0.8102 before easing back to the low 0.8080′s

USD/JPY  picked up from  79.35  on some eur-yen buying as EUR/USD broke up above 1.2800 and was further boosted by the Fitch downgrade, accelerating to 79.85 before settling back around 79.70. The EUR/JPY slipped back from 101.95 to 101.55.

AUD/USD failed to break up through offers around 0.9935 and was hit by the Fitch Japanese downgrade tripping sell stops through 0.9900 , filling real money bids  in the 0.9880′s to lows of 0.9866.

Gold and WTI crude both yielded to the pressure following the OECD ,  Gold dropping around $17 to  1773 and Crude off  around $1 to  $92.20

Most European bourses are  fractionally up on the day around 0.5%, with Italian MIB up  around 1.5%

• Funding still open for Australian banks
• Fall in milk prices to affect NZ economy
• Japan still world’s largest net creditor
• China leading index +0.8% in April, same as March
• Obama says EU needs to take balanced approach
• Regional stockmarkets +1% on average, Shanghai +0.5%
• Gold $1591/oz, Oil $92.50/bbl

Very quiet consolidation in tight ranges is all that can be said of this session. Dealers tried to push risk trades higher in early trade on the back of improved sentiment but momentum was totally lacking and the market died a slow death after the longs were squeezed out.

Sell orders capped the EUR/USD at 1.2820/25 and the market was unable to get at well-chronicled stop-loss orders starting above 1.2830. Dips were caused by intraday longs bailing out rather than any news or developments. Bids are reportedly solid near 1.2760. Range: 1.2784/1.2817

AUD/USD has traded in similar fashion, oscillating around .9900. The NZD/USD led the market in early trade after a strong technical close in NY, but momentum was lacking all round and the Fonterra statement weighed on bullish Kiwi sentiment. AUD/USD range .9885/.9921

USD/JPY 79.25/43, cable 1.5809/31, and EUR/GBP was capped by hedge fund sell orders at .8100, trading .8082/98.

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