Forex news from the European morning session 14 July 2015

News:

  • Tsipras considers stepping down after tomorrow's deal vote in parliament
  • Point at which interest rates may begin to rise is moving closer says Carney
  • Schaeuble proposes debt certificates for Greece
  • EU's Dijsselbloem says don't expect a decision on Greek bridge financing anytime soon
  • EU says it reached an important agreement with Greece
  • Eurogroup to have telephone conference tomorrow on Greek bridge financing
  • Greek banks will open when they get ELA says economy minister
  • Syriza parliamentary spokesman says there was a "coup" in Brussels
  • ECB's Coene has doubts about implementation of Greek deal
  • Luxembourg's Gramegna says bridge financing for Greece is not so simple
  • Greece's Lafazanis says agreement with creditors "unacceptable"
  • Greek interior minister says there can be policies to counteract recessionary measures
  • BOE's Carney: A Greek recovery requires Herculean efforts from all sides
  • Eurozone recovery is accelerating says Carney
  • Carney: Changing wages will have some effect on productivity
  • BOE's Miles doesn't see secular stagnation in the UK
  • Carney: We do not take a view on the level of the pound
  • Pickup in productivity will affect pace of tightening says Carney
  • EU's Mogherini formally announces Iran agreement
  • Nuclear agreement reached says Iranian official
  • Iran says several oil refineries have expressed an interest to buy it's supplies
  • PBOC says it will fine tune monetary policy to provide ample, appropriate liquidity for economy
  • China's PBOC says it will lower financing costs
  • Option expiries 10am NY cut today 14 July

Data:

  • June 2015 UK CPI 0.0% vs 0.0% exp y/y
  • German CPI June final mm -0.1% as exp/flash
  • July 2015 German ZEW economic sentiment 29.7 vs 29.0 exp
  • UK PPI input June mm nsa -1.3% vs -0.8% exp
  • May 2015 UK HPI 5.7% vs 5.5% prior y/y
  • Eurozone industrial production May mm sa -0.4% vs +0.2% exp
  • Spanish CPI June final mm +0.3% as exp/flash
  • Nikkei 225 closes up +1.47% at 20,385.33

It's been mostly about the pound this morning as first jitters over CPI saw it under pressure only to find comfort in rate hike talk again from Carney

Nothing new in what he said. " Moving closer" is hardly tomorrow but the market is desperate for a feeding frenzy whenever it gets a sniff, accelerated by the algo boxes which no doubt had interest rate rises fully set to trigger

Anyhow, after testing support/bids at 1.5450 cable tested 1.5600 again before settling back at 1.5580 as I type. EURGBP had posted 0.7138 from 0.7095 on a combo of euro-plus/uk-neg sentiment through the CPI data but it was soon heading back down through 0.7100 in a rush to post 0.7070 so far and is still languishing there now with rallies above 0.7085 capped so far. Overall the pound has had a good day at the office

EURUSD had an early dip to 1.0966 as concerns remain on bridge financing for Greece but it shrugged that off to rally to 1.1043 with EURJPY climbing to 136.34 after 135.28 lows

USDCAD loves its rally still as oil prices remain soft as sanctions on Iran get lifted and extra supply anticipated. 1.2806 the high post before retreating to support lines around 1.2780 again

USDJPY enjoyed some cross play love again after dipping early on to 123.19 from 123.55 as the Nikkei gave up a few of its gains into the close. 123.50 supply though capping again for the moment

AUDUSD and NZDUSD have both traded tightly also caught up in the cross play cross fire

A busy session overall and we can expect more of the same to come with US retails a data highlight