Forex trading headlines from the European morning session 22 Sept



In a session short on data and rhetoric and waiting for Draghi at 13.300 GMT it’s been left to commodity currencies to provide the action this morning to kick off the week, and it’s been a lively session.

The o/n USD sell-off was already showing signs of running out of steam with cable capping at 1.6366 and EURUSD at 1.2868 with USDJPY once again finding buyers into 108.60 but it was the AUD that set things going on reports by Roubini Economics that they saw AUDUSD down below 0.7500.

Whether that was the cause or the straw that broke the kangaroo’s bounce is not clear as metal prices were on the back foot but it showed the fragility of the Aussie $ right now and we saw a quick dip from 0.8930 to 0.8905 as leveraged acccounts sold heavily. It wasn’t long before we saw another wave of selling which triggered stops all the way down to 0.8865 where it ran into another layer of bids.

AUD pairs all suffered a similar fate apart from AUDCAD which was somewhat blunted by USDCAD rising from 1.0930 to test 1.1000 again as oil prices fell in early morning trading while the kiwi gave up its post-election gains with NZDUSD back down to test 0.8100

On the major pairs it was all a bit more civilised with cable drifting back to 1.6328 and EURUSD finding itself mostly pinned around 1.2850 ahead of Draghi and a large option expiry today. USDJPY clawed its way back above 109.00 then spent its time camped around 109.05 while USDCHF had another look at 0.9400 before stepping back.

A strange and somewhat fragmented session but one that sets us up nicely for more volatility today and into the week.