Forex news from the European morning session 27 August
News:
- Fed's George says we'll have to see what things look like in Sep
- China to cut treasury holdings to fend off fall in the yuan
- China's state pension fund expected to announce further investment plans
- China to increase targeted adjustments to fine-tune monetary policy in a timely way
- PBOC allowing onshore yuan conversion for direct investment
- More from Regling: Threat of Grexit is still there if bailout conditions not fulfilled
- ESM chief Regling says IMF may participate in Greek bailout
- ESM's Regling says nominal Greek debt cut not on the agenda
- Japan's GPIF posts a Q1 return of +1.9%
- Japan's LDP party likely to hold vote on leadership on 20 September
- Option expiries 10amNY cut today 27 August
Data:
- German import price index July mm -0.7% vs -0.3% exp
- UK Nationwide HPI August mm +0.3% vs +0.4% exp
- Spain Q2 GDP final QQ +1.0% as exp
- Eurozone M3 money supply yy +5.3% vs +4.9% exp
- France business confidence August 100 vs 99 exp
- Nikkei closes up +1.08% at 18574.44
More cheer from China has sent equities north and a reverse move for the euro and pound as many recent trades unwind
A good afternoon session on Chinese markets saw European stocks open higher and this sent the euro back into retreat with EURUSD falling to test strong support/demand between 1.1275-80 from 1.1350
EURGBP has also fallen from 0.7335 into good support/demand at 0.7280 while EURJPY selling to 135.60 has capped USDJPY above 120.50
GBPUSD has fallen to 1.5432 having failed to hold gains above 1.5500 and has conceded ground against commodity currencies in particular which have enjoyed the feel-good factor so far
USDCAD has fallen to 1.3185 from 1.3295 with firmer oil prices while AUDUSD held 0.7100 on an early dip to rally through good res/offers around 0.7150 to post 0.7172. NZDUSD has made steady gains from 0.6440 to 0.6482
US data to come includes US GDP revision and initial jobless claims but we'll be keeping an on equity markets too
