Forex trading headlines from the European morning session 27 June
News:
- Carney says interest rates could rise this year or next
- EU signs pact with Ukraine, Georgia and Moldova
- 7.5% growth in China? No problem says PBOC advisor
Data:
- UK Q1 final GDP q/q +0.8% vs +0.8% exp y/y +3.0 vs +3.1 exp/prev
- UK current account Q1 final GBP -18.495 bln vs -17.5 bln exp
- French final Q1 GDP q/q 0.0% as exp/prev
- German import prices May m/m 0.0% as exp
- June eurozone economic sentiment 102 vs 103.0 exp
- Saxony CPI June m/m +0.2% vs -0.1% prev
- Brandenburg CPI June m/m +0.3% vs -0.2% prev
- Swiss KOF indicator June 100.4 vs 99.1 exp
- Italian business confidence June 100.00 vs 99.8 exp
- Nikkei closes down 1.39% at 15,095.00
A strange session that promised on occasions to deliver more than it actually did.
Focus was on the pound again given that other pairs were going nowhere fast and a downward revision to Q1 GDP gave cable a quick knock down to 1.7014 where buyers were quick to take advantage and a rally back to 1.7035 ensued before drifting off. EURGBP had a look above 0.8000 at 06 but didn’t like it and we’re back at 0.7994. Carney comments gave the pound a brief wobble prior to the data.
EURUSD has sellers in the rally still and we’ve come down from 1.3630 to 09 where buyers are also queuing up between 1.3600-10 but magnetized also by large option expiries later.
USDJPY has been stuck around 101.40 capped by offers between 101.50-70 but also suppported by bids at 101.00-25 with EURJPY challenging bids at 138.00
AUDUSD and NZDUSD have both run into brick walls at 0.9450 and 0.8800 and we’ve seen a gentle drift to lows of 0.9407 and 0.8753 so far while USDCAD has been pinned around 1.0685 finding a few bids at 1.0675 a bit much to chew through for the moment.
German CPI due out in an hour which will be keenly awaited but don’t hold your breath for any major move.
