The forex trading headlines from the European morning session 26 June
- Former Australian PM Rudd wins leadership contest to take office again
- Nikkei closes down 1.04% at 12,834.01
- Shanghai Comp Index closes down 0.06% at 1951.50
- ECB’s Draghi repeats that monetary policy alone can not create real growth
- Draghi: OMT ready to be activated at any time if needed
- Draghi: Euro exchange rate is not a policy target for ECB
- Italian treasury denies that derivatives were used to meet euro-entry criteria
- UK ‘s Osborne to unveil latest spending cuts
- Japan’s GPIF head sees weak yen trend continuing, Nikkei rising
- BOE’s Miles says UK recovery quite weak. sees case for more QE
- Japan PM Abe determined to resolve hung parliament issue
- BUBA’s Dombret sees central banks provding generous liquidity for some time
- BOE FPC sees financial stability outlook clouded by weak global recovery
- Metal meltdown continues
- IFO revises 2013 German growth down to +0.6% from +0.7%
- German GFK consumer sentiment july +6.8 vs +6.5 exp +6.5 prev
- Swiss consumption indicator may 1.46 vs 1.46 prev
- French final Q1 -0.2% unch
Another mixed bag of a session with plenty of rhetoric but little of substance where we’ve seen USD generally still dominate but not across the board.
USDJPY continued its downward path having failed to hold gains above 98.00 and we saw a move down to 97.33 as EURJPY sellers drove that pair to 127.00. The move added pressure to EURUSD which was doing its best to hold above strong support at 1.3050 , helped by month-end EURGBP demand at 0.8470 ,only to finally cave in on comments from Draghi and find its way down to 1.3014.
The aussie dollar found some good early support which was accelerated by former PM Rudd throwing his hat into the ring for a leadership contest he later won to replace Julia Gillard. AUDUSD took out strong sell interest at 0.9300 to post highs of 0.9313 only to fall back once the election result was known. EURAUD selling down to 1.3998 has also given the ccy some decent support in the dips and added pressure on the euro.
GBPUSD looked wanted early on but failed at 1.5440 sell interest and consolidated around 1.5410 only to be bashed lower as EURGBP sprang from its lows to test 0.8500. Cable came down in a rush to test strong buying levels between 1.5370-80 where it held for a while only to break lower in another wave of greenback selling.
USDCHF continues its grind higher to 0.9415 but not enough to lift EURCHF while elsewhere USD continues to look under- pinned as we head into the US session.
