Forex trading headlines for the European morning session 25 July
- UK Q2 GDP prov +0.6% vs +0.6% exp +0.3% prev
- UK Q2 GDP – full ONS details here
- German IFO business climate july 106.2 vs 106.1 exp
- Nikkei closes down 1.14% at 14,562.93
- Spanish Q2 unemployment 26.3% vs 27.2% prev
- Shanghai Comp Index closes down 0.6% at 2021.17
- EZ M3 money supply june y/y 2.3% vs 3.0%
- Italian consumer confidence july 97.3 vs 96 exp 95.8 prev revised up from 95.7
It was all eyes on the UK GDP this morning, as indeed it has been for much of the week, and with a reading of +0.6% it obviously disappointed many who had expected an even higher figure. A buy rumour/sell fact scenario we had been saying and so it proved.
Cable fell from 1.5373 to 1.5317 before quickly rebounding to 1.5350 only to fall again to technical support at 1.5264 having first wiped its feet a couple of times at 1.5300. EURGBP rallied sharply to 0.8615 from 0.8590 then again to test sell orders at 0.8630 before finally breaking through to post highs of 0.8638 so far. And the story is the same across the board with GBPJPY, GBPCHF both lower and GBPAUD dropping sharply from highs of 1.6820 to 1.6657. Encouraging data for the UK maybe but the market wanted and needed more.
EURUSD has failed once again to get through 1.3250 and this morning has seen a fall from 1.3235, immediately before a less than exciting German IFO release, to test strong support around 1.3165 before it too has staged a rally as the US walks in the door with USDJPY falling to 99.63 after clinging to 100 for most of the session.
AUD and NZD have both recovered too from their Asian lows but sellers still seen in the rallies.
So, a session that promised a lot and didn’t disappoint. Unless, of course, you were pound positive.
US weekly jobless claims and durable good orders to follow at 12.30 GMT should keep the pot bubbling nicely.
