Forex news from the European morning session 28 July

News:

  • Progress continues to be made towards Greek program says EU
  • Gertjan W Vlieghe appointed to the BOE MPC
  • UK GDP can be such a taxing affair
  • EURGBP heads south after UK Q2 GDP
  • AUDUSD: Bears continue to sell into 1:1 rallies
  • Option expiries 10am NY cut today 28 July

Data:

  • Q2 2015 UK GDP prelim 0.7% vs 0.7% exp q/q
  • Italian business confidence July 103.6 vs 103.7 exp
  • Nikkei 225 closes down -0.1% at 20,328.89

It's been a session of mixed fortunes for the pound and euro with other currencies largely treading water in the absence of fresh initiative

EURUSD had an early dip into 1.1050 support areas after failing to get back above 1.1100 and this dragged EURGBP down toward 0.7100 only for both pairs to rebound on lack of further follow through

Cue the first reading of UK Q2 GDP which came in bang on line but gave relief to bulls who may have feared softer data given the prior sell off in GBPUSD down to 1.5528.

The pair ground its way back up to test 1.5580 o/n highs and then triggered a few stops to take out res/offers at 1.5600 to post 1.5619. EURGBP needed little excuse to head back down through 0.7100 then 0.7080 and finally 0.7072 as EURUSD found itself triggering stops below 1.1050 to post 1.1027 so far

Overall the pound has made decent gains getting back above 1.5000 v CHF which continues to weaken with the SNB never far from the frame. EURCHF is off yesterday's 1.0689 highs but remains underpinned

USDJPY found decent support at 123.50 even as the Nikkei was fading into the close and has needed little excuse to nudge higher to test 123.80 again but tempered again by EURJPY selling. GBPJPY though has marched strongly to 193.25

USDCAD is treading water still between 1.3000-50 while AUDUSD has good two-way interest between 0.7270-0.7325 and NZDUSD finds itself pinned between 0.6630-80

US services PMI and CB consumer confidence may have impact as focus turns once more to the FOMC tomorrow