Forex trading headlines from the European morning session 7 July
News:
- China’s Li says Chinese economy faces downward pressure
- BOJ’s Sakura report keeps assessment of all 9 regions unchanged
- ECB’s Nowotny says EU area credit markets remain highly fragmented
- Current yen FX level is comfortable say Japanese firms
- PBOC repeats that China will pursue prudent monetary policy
Data:
- German industrial output May m/m -1.8% vs 0.0% exp
- Swiss unemployment rate unadj June 2.9 % vs 2.9% exp
- July eurozone sentix index 10.1 vs 7.8 exp
- Russian GDP grew by 1.2% y/y Q2 2014
- Japanese co-incident indicator May m/m 0.0 vs -3.4 prev
- Nikkei closes on session lows at 15379.44, down 0.37%
All things are relative of course in these current markets and the moves have been limited with early trading seeing the euro under pressure after weak German data. EURUSD tested 1.3575 again from 1.3590 with EURGBP down to 22-month lows of 0.7915, but since then it’s been a steady recovery.
EURUSD has been back to have a quick look above 1.3600 before retreating but EURGBP has soldiered on to post 0.7943 putting a cap on cable at 1.7144 and forcing a move lower to 1.7116
USDJPY had a little wobble from 102.05 to 101.90 on a report that some Japanese firms are not liking the weaker yen and this also put pressure on EURJPY to test 138.50 before holding.USDCHF had an early rally to 0.8960 resistance on the EURUSD dip but has since retreated back down to 0.8940 with EURCHF also looking a tad soft to test bids at 1.2150.
AUDUSD has traded tightly around 0.9360 while NZDUSD has rallied off lows of 0.8713 to 0.8740 following the Asian zone dip. USDCAD has slowly dribbled its was down from 1.0653 to 1.0641 lows presently.
A bit of opportunity then to start the week and we’ll now see what our friends across the pond have to do on their return from a long week-end.
