Forex trading headlines from the European morning session 22 July
- BOJ’s Sato says restoring fiscal health is key to economic recovery
- China’s SAFE says not seeing signs of capital outflows
- China’s Zhang says they will fine tune monetary policy when necessary
- Bundesbank says German growth was strong in Q2
- Portugal’s Coelho says political crisis has dented confidence
- IMF says that Ireland’s austerity measures are not self defeating
- German fin min says no imminent plans to sell Commerzbank
- Nikkei closes up 0.47% at 14,658.04
- Shanghai Comp Index closes up 0.61% at 2004.76
Summer is certainly here and the trading volumes have turned to a trickle but with thin liquidity providing a few sporadic moves.
One of these came this morning when cable jumped up, out of the blue, through strong sell interest around 1.5300 and then shot higher still to take out the next line of offers at 1.5330. High post was 1.5341 and currently 1.5327. Talk of the UK Q2 GDP coming in stronger than expected on Thursday was fuelling the move and the Pound has seen gains across the board.
EURGBP at first couldn’t break back below 0.8600 which gave EURUSD a leg up to 1.3190 only to run into good sell interest and retreating, thus dragging EURGBP down to 0.8594 . EURJPY has looked well supported but not with enough energy to get through 132.00 again with USDJPY also finding it tough to get past 100.15, spending most of the morning clinging to 100.00
AUDUSD went for a little walk down through 0.9200 early on but was soon back above and stayed there,going nowhere fast since.
There’s been nothing by way of data and little rhetoric to provide any action, and there’s not a lot to look forward to either, but US existing home sales at 14.00 GMT might give us something to trade around.
We can but hope.
