Forex trading headlines from the European morning session 17 July

It’s been all about the pound again this morning but this time it’s been GBP-positive for a change after the latest jobs report came in better than expected and the MPC minutes showed a 9-0 vote to keep QE on hold versus a 6-3 decision for some time.

Cue GBPUSD up to 1.5246 from 1.5090 and EURGBP down to 0.8633 from 0.8710. Across the board the reaction was the same. GBPAUD up to 1.6540, GBPJPY to 152.06 and GBPCHF to 1.4318. Traders were caught on the back foot and we saw cable driven back down to 1.5176 only to bounce back up to 1.5227 as I type. EURGBP rallied to 0.8661 but has similarly moved back below 0.8630.

Elsewhere its been relatively quiet except for AUDUSD which drifted down to 0.9191 before a small bounce to 0.9215 with USDJPY grinding higher to 99.84 before stalling.EURUSD has been mostly stuck to 1.3145 but EURJPY has rallied sharply from 130.45 to 131.36 which has given a line of support above 1.3125 after an earlier dip.

So that’s the curtain raiser ahead of the main performance from Mr B at 14.00 GMT. Prior to that we have US housing data at 12.30 GMT to keep things ticking over and the Canadian interest rate decision at 14.00 GMT

All in all it promises to be a lively session, and some.