Forex news from the European morning session 17 August

News:

  • Germany's Seibert says IMF involvement in Greek deal to be decided in October
  • Germany's Semmelman says IMF involvement in Greek bailout is indispensable
  • Greek confidence vote in parliament is "self-evident" after last week's Syriza rebellion
  • Germany's Fuchs says IMF involvement in Greek deal is key issue
  • Bundesbank says yuan devaluation highlights global uncertainty
  • Fitch says lower dairy prices are not yet a rating risk for New Zealand
  • Iron ore prices to fall by 30% in the next 18 months, says Goldman Sachs
  • EURUSD fall due to hedge fund selling
  • Option expiries 10am NY cut today 17 August

Data:

  • Eurozone trade balance June SA EUR+21.9bln vs +23.1bln exp
  • Switzerland retail sales June yy -0.9% vs -1.8% prev
  • Nikkei 225 closes up +0.49% at 20,620.26

It's been a morning of mixed fortune for the euro as hedge-fund sales found demand in the dips again

EURUSD got back above 1.1100 after a few early failed attempts only to then get slapped lower as hedge-fund supply saw it tumble quickly to 1.1063.Euro pairs across the board suffered a similar fate with EURGBP down to 0.7064 and EURJPY 137.75 from 0.7090 and 138.20

But the euro wasn't going to lay down easily and the dip-demand we've seen recently reappeared to send the currency back to 1.1119, 0.7103 and 138.40 before running of steam

Cable had early support from the EURGBP selling then the reverse was equally true to send to down to 1.5625 after once again finding the supply into 1.5700 a step too far.

USDJPY has found itself in a tight range being pulled around by yen crosses while USDCHF has also been range bound with EURCHF finding supply overall again

AUDUSD is now on session lows at 0.7346 on the general USD demand but also capped by option expiry interest again at 0.7400 while NZDUSD continues its crawl along the bottom

USDCAD has once again looked perky and rallied to 1.314 on a combo of USD demand and indifferent oil price

US Empire State mftg index out a 12.30 GMT will be awaited to provide some further impetus to a day that's see a decent range/opportunity for the intra-day traders.