The forex trading headlines from the European morning session 25 June

Another lively session as eyes and ears remain focussed on the Shanghai Composite Index, at one stage down 6% just before I sat down.

However, expectations of some dovish comments, duly delivered eventually, did enough to stage a decent rally and it closed only 0.2% down. This was enough to give the aussie dollar some decent support with AUDUSD rallying from 0.9197 to meet strong sell interest at 0.9300 and having to retreat, while similarly AUDJPY made good progress up to 90.57 from 89.58 before falling back.

USDJPY found a little support as the Nikkei rallied but always had good selling interest above 97.55 which ultimately sent it back down to test good support just below 97.00. The upbeat/defiant PBOC comments though gave it a spring in its step back to 97.53 before fading again.

GBPUSD and EURUSD were happy just to range-trade, and narrowly for the most part, with the former contained by buyers at 1.5425 and sellers at 1.5465. EURUSD looked perky first thing but couldn’t chew through sell interest at 1.3150 and fell back to test support around 1.3110 before bouncing yest again.

USDCHF continues to look well supported which is keeping EURCHF from falling too far at the moment,while USDCAD fell back to 1.0457 before running into a few buyers.

So another session that provided opportunity and plenty of rhetoric, but leaving traders still somewhat battle-weary and bemused.