Forex news from the European morning session 27 July

  • Troika wants more prior actions from Athens before any loan disbursement
  • ECB's Coeure says it's now a question of how to restructure Greek debt
  • EU and IMF mission heads to arrive in Athens by Friday
  • EC says Greek talks with institutions have started
  • ECB says it's too early to say that inflation has reached a turning point
  • Greek domestic bank deposits fall by €7.7bln in June mm
  • UK's Osborne says EU referendum could be held if/when earlier deal is reached
  • UK mortgage holders can withstand rate hikes says Moody's
  • BOJ's Nakaso says negative effects of oil on CPI to peak in July-Sept
  • Option expiries 10am NY cut today 27 July

Data:

  • German IFO business climate index July 108.0 vs 107.2 exp
  • German import price index June mm -0.5% vs -0.3% exp
  • July 2015 UK CBI industrial trends orders -10 vs -5 exp
  • Eurozone M3 money supply June yy 5.0% vs +5.1% exp
  • Nikkei 225 closes down -0.95% at 20,350.10

It's been all about the euro this morning but after good two-way business traders are not really any the wiser about where to go next

Early defence of a large 1.1000 option expiry saw stops triggered above 1.1025 to test 1.1050 and then we were triggering more through 1.1060 to post 1.1090 before pausing. Better than expected German IFO data then took us to 1.1114 in a rush before traders called time and took profit

We've since been back to 1.1062 and steady with similar patterns seen in other euro pairs. EURGBP rallied to 0.7162 after IFO but then fell back to 0.7130 while EURJPY tested 137.00 only to retreat to 136.43 as I type

Cable once again got pulled around by EURGBP and dipped below 1.5500 from 1.5525 as that pair surged but then found its composure to rally back to where it came from.

USDJPY developed an offered tone to 123.40 on a softer Nikkei then found support as EURJPY marched higher only to then test bids around 123.20 as the euro gave up its gains

USDCHF shadowed EURUSD but kept a bid as EURCHF took out 1.0600 barrier option resistance while USDCAD dipped from 1.3030 res/offers to 1.2988 before running into fresh demand back to 1.3026

AUDUSD and NZDUSD have both traded tighter caught up in a bit of cross play crossfire with the former finding sellers above 0.7300 but demand at 0.7270

US durable goods data coming up at 12.30 GMT and we can expect more fun n games to follow in its wake as markets grab at any FOMC pointer