Forex news from the European morning session 28 August
News:
- PBOC to cut rates again by end of Dec
- PBOC add another yuan 60bln SLO at 2.35%
- ECB's Draghi supports idea of European Finance Ministry - FAZ
- Swiss Q2 GDP positive ... avoids a recession. Solid private and government sending cited
- HSBC revises gold forecasts for 2015 ($US1160) and 2016 ($US1205)
- End of month flows to feature today
- German regional CPI shows signs of renewed weakness
- EU-Russia get set to gas about gas on 11 Sept
- Option expiries today
Data:
- Spanish CPI August flash mm -0.3% vs -0.9% prev
- Q2 2015 UK GDP revision 0.7% vs 0.7% exp q/q
- Saxony CPI August mm -0.1% vs +0.2% prev
- Bavaria CPI August mm +0.1% vs +0.25 prev
- North Rhine Westphalia CPI August +0.1% vs +0.1% prev
- August 2015 Eurozone economic sentiment index 104.2 vs 103.8 exp
- July 2015 Italy wage inflation 0.1% vs 0.1% prior m/m
- France PPI July mm -0.1% vs +0.1% prev
- Swiss Q2 GDP qq +0.2% vs -0.1% exp
- Italy consumer confidence index Aug 109.00 vs 107.00
- Q2 2015 Greece GDP 0.9% vs 0.8% prior q/q
- Nikkei 225 closes up +3.03% at 19,136.32
It's been a steadier session but not without opportunities
Equity markets fared ok again in Asia but European markets have not looked so sprightly which gave the euro a lift to start with but USD demand has generally kicked in since then
EURUSD tried to hold above 1.1300 but failed and retreated to 1.1252 even with EURGBP finding month-end demand to post 0.7354 before falling back
GBPUSD has been on a one-way ticket low from 1.5440 and posted lows now of 1.5378 while USDJPY remains supported in the dips into 120.50 but rallies tempered by yen pair selling
USDCHF has also suffered on CHF demand and fallen below 0.9600 from 0.9668 while USDCAD continues to range-trade with demand into 1.3150 and res/offers above 1.3300
AUDUSD and NZDUSD have both fallen on the US$ demand with 0.7200 and 0.6500 proving good caps to return to 0.7136 and 0.6455 respectively
