The forex trading headlines for the European session
- ECB hints at interest rate cut
- German manufacturing flash PMI april 47.9 vs 49 exp 49 prev
- German services PMI april 49.2 vs 51 exp 50.9 prev.. composite 48.8 vs 51 prev
- UK PSNBR march GBP 16.747 bln vs 14 bln exp 4.37 bln prev
- BOE’s McCafferty says appropriate to tolerate above-target inflation over next 2 years
- Cyprus fin min says fully committed to bail-out deal
- French business climate april 88 vs 90 exp 91 prev revised up from 90
- French manufacturing PMI april 44.4 vs 44.3 exp 44 prev
- French services PMI april 44.2 vs 42 exp 41.9 prev
- UK CBI industrial trends orders april -25 vs -14 exp -15 prev
- Eurozone manufacturing PMI april 46.5 vs 46.8 exp 46.8 prev
- Spanish bond auction sells EUR3.01 bln vs 2-3 bln target. yields lower
- Italian and Spanish bond yields hit 18 month lows
- Eurozone services PMI april 46.6 VS 46.6 exp 46.6 prev
- Italian consumer confidence april 86.3 vs 85.1 exp 85.1 prev
A busy session once the data releases got underway and sellers were noted in both EURUSD and GBPUSD into the rally to 1.3080 and 1.5270 after better than expected French PMI numbers. It didn’t last long though as 30 minutes later we were sharply lower after awful German data and reports on one newswire that the ECB were preparing for an interest rate cut.
Cue EURUSD falling to good support at 1.3000 before the almost-immediate second wave sent it lower again to 1.2974 just ahead of further buying interest at 1.2970 and 1.2950, before eventually rallying back to 1.2997 as I type. EURJPY posted lows of 127.86 as USDJPY remained unable to move higher and which later tested 98.50 before a small rally.
EURGBP came down to test support at 0.8520 before finding a few buyers sending GBPUSD down to play a little bit of catch up with EURUSD after UK PSNBR data had only a limited negative impact but then posted lows of 1.5197 before the buy orders around 1.5200 prevailed. A drop again to 1.5216 from 1.5230 after weaker CBI trends data but then consolidation again. Rebound so far stretched to 1.5253 with EURGBP lower at 0.8514 after comments by BOE’s McCafferty that dampened interest rate expectations.
EURCHF has gone against the session trend by continue its slow grind higher to 1.2224 so far as the swiss franc weakens again, with no one ruling out quiet SNB involvement still. USDCHF has been up to 0.9419.
AUD has had a mixed morning first testing lower then rallying after AUDUSD failed to break through strong support at 1.0220 while USDCAD has been up to 1.0286 but stalling ahead of strong resistance into 1.0300.
Plenty of opportunity again in the session, and let’s hope that continues as US traders join in the fun.
