ForexLive trading news and headlines 27 May 2015

The news

The analysis

Won't somebody make it stop

Dollar watchers are still suffering from vertigo as USDJPY grabbed yet more highs. We took off just ahead of the US open through 123.30 to knock out exporter offers and another barrier before stalling at the July 2007 highs. As usual dips are very very shallow and we could only muster a drop back to around 123.40 before running up again. Another batch of strong offers with some large stops behind sat at 123.80 and they held up for a while. We probed and probed until we popped and the stops got run and we zoomed through 124.00, more barriers and offers, like a hot knife through butter to 124.07. that proved to be the final hurrah of the day and we end the session drifting back to 123.70 in what looks like some late day profit taking

The main data point was the BOC interest rate announcement but as there were no expectations for a move it proved to be a dud. The statement re-affirmed the BOC's neutrality on policy and that removed what little possible dovish risk there was. The dollar train then took off and after USDCAD breached the 61.8 fib of the March fall, the pair fell back to what is looking like support at 1.2455

Greek news is never far away and today was one of the better days for springing a story that moved markets. Up popped a headline from Greek officials saying that a deal was being drafted. Up popped EURUSD from the 1.0820 lows to 1.0910. We never take the Greeks word for it alone and thus it proved again with a denial moments later from Europe. Down we went to 1.0860 before Tsipras also injected some positivity that a deal was close. Yet more denials came but the market is seemingly thinking that there's no smoke without a fire and that something is finally being bolted together. That's kept the euro bid through to the end of the session and helped European stocks finish on a high. There's still plenty to be worked out but we could be close folks (Please be true as posting on Greece is doing my nut in)

Elsewhere currencies have either been at the mercy of the US dollar or later on the euro. GBPUSD has been down to 1.5300 before bouncing to 1.5355 and AUDUSD has been for a 9 pip trip under 0.7700

As you've seen Eamonn is in da house so I'll leave you to him. Have a great evening all