Forex news from the European morning session 11 May 2015

News:

  • Nowotny says the ECB can not be a lender of last resort to countries
  • French fin min Sapin says there has been progress on Greece but no deal coming just yet
  • Varoufakis to meet with Schaeuble at 13.15 GMT
  • Bank of England MPC leaves interest rate on hold at 0.5%
  • EU worried about Greece missing IMF payment - MNI
  • Greece not now examining any Plan B
  • We will continue to flog the dead horse says IMF official
  • Sapin says France does not want EU treaty changes to accommodate UK
  • China's SAFE expects current account surplus in 2015
  • Bank of England back in the frame after UK election

Data:

  • Euro pressure gives the pound another lift
  • ForexLive needs a little help, to help you
  • ForexLive at the IFS University College, London
  • Option expiries 10am NY cut today 11 May
  • SNB sight deposits w-e 8 May CHF 379.364 bln vs 384.47 prev
  • China vehicle sales Jan-April +2.8% yy vs +9.1% prev
  • Nikkei 225 closes up +1.25% at 19,620.91

All eyes on the Greece/Eurogroup talks concluding today and with no one expecting any agreement attention has returned to the euro after that UK election side-show on Friday.

EURUSD has been on the slide again after falling in Asia, then rallying but having failed to rally back over 1.1200 once more. So far we've been back to test 1.1150

EURGBP fell from 0.7257 to 0.7230 before bouncing again but then failed to breach 0.7250 and it was a green light to fall back to take out good support/bids between 0.7220-25 accelerating a move to the next line at 0.7200 where we've held so far.

The move down in EURGBP provided bids on cable around.1.5400 and that move down from 0.7250 gave the pair a further boost to straight-line to chew through some strong offers around 1.5500, only to give up and fall back to 1.5465 as I type. With many other pairs in tight-ish mode we've seen some decent GBP gains across the board

USDJPY had an early look at 120..00 where there are large option expiries later and we've been mostly camped around 119.90 since with cross play crossfire once again dictating the price action

USDCHF had a early dip from 0.9340 to eventually dip below 0.9300 as EURCHF became another euro casualty from 1.0430 to 1.0386 before both pairs found some support

USDCAD had a run up to 1.2146 from 1.2100 on softer oil price before running out of puff but going nowhere fast while AUDUSD and NZDUSD have also had a quiet, albeit back-foot, start to the week

Not exactly a manic Monday but not a boring one either