Forex trading headlines from the European morning session 5 July

A livelier morning than might have been expected ahead of the NFPs but it wasn’t long before attention turned back to the UK and yesterday’s dramatic sea-change statement from the BOE.

Cable started to ease lower then dropped to strong support around the barrier at 1.5000 before finally breaking through, but not following on initially. Soon came the second wave though after a failure to rally and we smashed through the next good support at 1.4980 before finally posting 1.4963 lows. EURGBP hit 0.8590 from 0.8570 in a rush then broke higher to 0.8607 before falling back. GBPAUD and GBPJPY both took at a big hit amidst renewed yen and aussie strengthening and may well have been the catalyst for triggering the accelerated declines in the pound.

USDJPY rose in early trading as the Nikkei closed higher but then the futures turned lower and we saw yen strength across the board. USDJPY dropped to 99.90, EURJPY near to strong support at 128.50 and of course GBPJPY to 149.58.

The euro has looked under pressure too as the ECB comments continue to weigh and weaker than expected data from Germany but we’ve found reasonable support in the dips so far. AUD and CAD have had a good morning by and large but Gold dropped to USD 1233 before finding a few buyers.

So a lively enough session to warm us up nicely for the main act to follow. It’s Friday, and it’s about to get more frantic.