Forex news from the European trading session - 22 August 2018
Headlines:
- Japan's financial regulator chief urges regional banks to get serious
- BOJ says Kuroda will not attend Jackson Hole symposium
- BOJ deputy governor Wakatabe to attend Jackson Hole symposium
- China says that it hopes trade talks with US can produce a good outcome
- Kuwait oil minister says OPEC, non-OPEC production to be reviewed in Algeria meeting
- Abe and Trump to hold phone call on North Korea later today - report
- US, Mexico move closer to NAFTA consensus, but key hurdles remain - report
- Japan June all industry activity index -0.8% vs -0.8% m/m expected
- NAFTA talks to set the stage for MXN and CAD as we close out the week
- John Bolton says Turkey made a "big mistake" in not releasing pastor Brunson
Markets:
- NZD leads, AUD lags on the day
- European equities mixed, mostly a little higher
- Gold up 0.03% to $1,196.47
- WTI up 1.37% to $66,74
- US 10-year yields flat at 2.828%
- Bitcoin up 3.34% to $6,667
The European trading session today turned out to be yet another dud as currencies traded range-bound for the most part. The dollar did attempt to make a run for it but buyers were unable to find any momentum and those gains were quickly surrendered thereafter.
It looks like summer is really hitting European trading this week and we've had rather slow sessions to start the week so far.
EUR/USD started the session trading at 1.1570-75 levels before moving lower to 1.1553 as the dollar gained some traction on the day. However, the greenback was quick to give up those gains and buyers came back in with renewed vigour to send EUR/USD to a test of the 1.1600 handle before falling back a little currently.
USD/JPY has had a more subdued session as it did yesterday. This time the pair sits in a range between 110.30-50 on the session as large expiries continue to anchor price action on the day.
GBP/USD started the session around the 1.2900-10 levels before falling to a low of 1.2868 as the greenback tried to pull ahead. Although the pair is trading lower now, the dollar did give back some of those gains and the pair now trades around 1.2880-90 levels as we end the session.
USD/CAD was more subdued early on after initial NAFTA headlines brought the pair on a wild ride in Asian trading. The pair settled around 1.3035-40 with little change despite the dollar moving. But as oil prices started to push to the highs now, we're seeing the pair slowly inch lower towards the day's lows just under 1.3020.
NZD/USD was one of the main beneficiaries on the day as good data boosted the kiwi. Although some of those gains have been erased, the kiwi remains the best performing currency heading into US trading and continues to trade around the 0.6700 handle.
The gains in the kiwi is what is helping to lead the aussie lower on the day as AUD/USD struggles as a result of AUD/NZD selling. AUD/USD was dragged to a low of 0.7334 as the dollar advanced but now trades at levels where it started the session close to 0.7350.
All eyes now turn to US trading where the Cohen-Manafort-Trump fiasco is set to dominate headlines once again, and of course the FOMC meeting minutes is also due at 1800 GMT.
