Forex trading headlines from the European morning session 26 June



Once again the pound has come to the rescue of a market decidedly in need of some action and even before the BOE’s FPC stability report we had seen some good two-way action.

GBPUSD had an early trip to 1.6970 from 1.6997 as EURGBP broke up to 0.8032 but then it was all change as we saw 1.7001 and 0.8008 then a rapid surge to 1.7024 and 0.7990 prior to the announcement.

The measures introduced to curb house price rises will have little net effect and traders bought more GBP in the anticipation that interest rates will still have to rise sooner rather than later. We’ve seen 1.7036 and 0.7990 again but the levels have attracted fresh selling interest. Other pound pairs have followed the same lively pattern.

Elsewhere EURUSD had an early look above 1.3640 but didn’t like it and we’re now back around 1.3610 with USDJPY stuck in a rut around 101.75 and USDCHF holding above the decent bids at 0.8920 to rally to 0.8941.

AUDUSD has held onto o/n gains above 0.9400 and NZDUSD still has bids after its own Asian surge but stalling ahead of offers from 0.8780. USDCAD has chewed its way through some of the 1.0700-10 bids but given up at 1.0704 to rally to 1.0715.

So another lively session for pound traders but not so hot for the rest. Let’s see what our friends across the pond make of it all