Forex trading headlines 26 May 2014
- BOJ’s Iwata: Yen will appreciate if only Japan has deflation
- Europe just about survives European elections
- New Ukraine president wants compensation from Russia
- Draghi: Asset buying plan ready for lower inflation expectations
- EU vote shows Italy can have major influence on EU policy says Renzi
- Greece’s EU election winners Syriza already causing upset
- Merkel happy with her party’s solid performance in EU elections
- Spain pain easing as investors step into the property market
- Cyprus savers sue the ECB
- Pfizer pulls out of AstraZeneca deal
- EU’s Barroso says EU election was a stress test for EU institutions
Elections here, elections there, elections blooming everywhere. I lost the ForexLive bank holiday coverage election and so managed to be front and centre for Draghi’s speech. With the market trying daily to second guess the exact action by the ECB, it was a surprise that there was only a 10 pip fall in EUR/USD when he laid the plan on the table. If the ECB’s medium term inflation forecasts point lower then QE is a’coming.
European stocks liked the results from the elections even with possible trouble looming from France, who’s National Front party swept to victory, and Greece’s Syriza looking to upset the Greek apple cart. Italy is the star of the show gapping up nearly 400 points. As we slide into the close it’s up 747 at 21493 +3.61%. Spain and Germany are posting 1.2% & 1.3% gains respectively with the Dax hitting a new all time high. The Cac is up but only by 29 points or 0.7%
EUR/USD consolidated around 1.3640 and then late in the European day drifted up to 1.3655 as a tiny bout of dollar selling spread it’s icy tentacles across prices.
USD/JPY lost a massive 3 points to the days low at 101.84 but has been on the slide all day from an overnight high of 102.05
GBP/USD is stuck in a bank holiday traffic jam between the A16835 and the A16855 and not even the news that Pfizer has pulled out of buying AstraZeneca had any effect.
AUD/USD tried to crack 0.9250 for the second time today but to no avail though we also remain in a tight 15 pip range.
A quiet day but beware that UK and US traders may want to have their say on the weekend events when they return to their desks tomorrow.
If Adam doesn’t pop his head in a little later then Eamonn will be the next ugly mug ray of sunshine you see on here.
See you all tomorrow