Forex news from the European morning session 7 July 2015

News:

  • Germany's Schaeuble says debt write-down is not possible under bailout rules
  • Bank of Italy's Saccomanni says Greek debt restructuring already "significant
  • EU's Juncker says throwing Greece out of EMU is " not something we want"
  • EURUSD knocks out the late June lows but finds buyers waiting
  • Germany's Gabriel says he only sees debt reduction upon Greek reforms
  • EU's Schulz says both sides need to move in Greece negotiations
  • ECB says ELA must not threaten monetary policy implementation
  • Latest Greek proposals will differ little from the previous ones
  • Tsipras has a telephone chat with Jack Lew
  • Austria's Schelling says Grexit still "rather unlikely"
  • French PM Valls says the basis for an agreement with Greece does exist
  • China's Wang says they are confident of reaching 7% GDP target this year
  • Option expiries 10am NY cut today 7 July

Data:

  • UK industrial output May mm+0.4% vs -0.2% exp
  • German industrial production May mm SA 0.0% vs +0.1% exp
  • Swiss unemployment rate June nsa 3.1% as exp
  • Nikkei 225 closes up +1.31% at 20376.59

Growing uncertainty over a Greek deal has seen risk aversion/safe-haven demand knocking the euro lower but also breaking the back of some recent stubborn GBP demand

There's been plenty of hot air coming out of the talking heads but little of real positive note and the euro has needed little excuse to head down with EURUSD breaking down through 1.1000 to post 1.0946 with EURJPY dropping to 134.11 from 135.40 and EURGBP down to 0.7060.

Yen and swiss franc pairs were dumped as uncertainties prevailed and this added pressure played its part in giving the pound a shove lower accelerated by GBPUSD failing to hold above 1.5600 in early trading. More support at 1.5550 was chewed through, then 1.5500 , then 1.5485 to post lows of 1.5438

GBPJPY has tested 189.00 from 191.20 and GBPCHF to 1.4634 from 1.4730 as traders have got squeezed out of longs given the pound's stubborn demand in the dips recently

USDJPY has broken down through 122.50 to post 122.37 while USDCHF has rallied to 0.9498 from 0.9430 tempered by EURCHF being on the back foot.

USDCAD has enjoyed the ride higher to 1.2734 despite firmer oil price for the most part while AUDUSD and NZDUSD have been under the cosh with the former posting 6-year lows of 0.7417

Markets are on hot coals as we wait on every scrap of news from Brussels. It's going to get ugly.