Forex trading headlines from the European morning session 22 May
- Q1 2014 UK GDP revision 0.8% vs 0.8% exp q/q
- UK PSNBR April m/m GBP 9.631 bln vs 3.5 bln exp
- Eurozone Markit mftg PMI May flash 52.5 vs 53.2 exp
- German Markit mftg PMI May flash 52.9 vs 54.0 exp
- French Markit mftg PMI May flash 49.3 vs 51.0 exp
- May UK CBI distributive trades 0 vs 4 exp
- French business climate May 99 vs 100 exp
- Nikkei closes up 2.11% at 14,337.79
- Shanghai Composite Index closes down 0.17% at 2021.46
A strange session, short of rhetoric, that saw mixed bags of data for the Eurozone and UK and we’ve had price actions to match.
Early advances by USDJPY up through 101.70 on a stronger Nikkei failed to explode any higher on stops as widely expected and we’ve drifted back to 101.50 support with yen pairs largely following suit.
Some contrasting flash PMI data gave the euro early wobbles with EURUSD posts of 1.3654 then 1.3657 but buyers were quick to take it back beyond 1.3680 and it’s been camped around there since.
EURGBP was also under pressure at 0.8086 but a combo of euro demand and GBP longs bailing out after UK GDP and public finance data saw a rally back above 0.8110 with GBPUSD falling from pre-data highs of 1.6917 to test support lines around 1.6860.
These are fickle and fragile markets and we’ve seen also AUDUSD retreat from its decent 0.9273 Asian rally as has NZDUSD after once again capping around 0.8590, while USDCAD has retreated from another failure to get above 1.0920.
All delicately poised, aka scrappy/caution advised, with entry and exit points ever more crucial in diminshing-range markets.
