Forex trading headlines for the European morning session 28 August
- Syria: UN’s Ban Ki-Moon says inspection team “needs time to do its job”
- Syria: UK PM Cameron says he has drated a resolution for UN condemning chemical weapons attack
- Syria: UN envoy Brahimi says UN resolution needed before any military action
- Syria: German foreign min urges all UN security council members to sign resolution
- UK CBI distributive trades survey august +27 vs +19 exp +17 prev
- NZ ministry says Fonterra products did not cause botulism
- German GFK consumer sentiment sept +6.9 vs +7.1 exp +7 prev
- Swiss UBS consumption indicator july +1.41 vs +1.44 prev
- BOJ’s Iwata says they will continue with QE until inflation stabilizes at 2%
- EZ M3 annual growth july +2.2% vs +2.1% exp +2.4% prev revised up from 2.3%
- Italian retail sales june m/m -0.2% vs +0.1% prev
- Nikkei closes down 1.51% at 13,338.46
- Shanghai comp index closes down 0.11% at 2101.30
With Syria still very much preying on activity levels we’ve had a mostly tight session but the pound has come under attack again on the belief that BOE governor Carney will talk in dovish tones in a speech from 12.45 GMT today.
GBPUSD opened around 1.5515 and has been down to test strong buying interest at 1.5450 having triggered stop-losses through another big level at 1.5480. EURGBP month-end demand added to the pressure first off and has continued to chew through strong sell interest to 0.8650, posting highs of 0.8640 so far. Overall it’s been a bit of a pasting for the pound.
Elsewhere AUDUSD had a quick dip to 0.8897 but found buyers again while NZDUSD enjoyed a brief respite to 0.7780 on the Fonterra news before resuming its sorry decline back to the overnight lows.
USDJPY has seen a decent rally to 97.59 from the Asian lows of 96.82 while EURUSD has gradually dribbled its way down to 1.3337 in what has been a mostly USD-positive session.
We now await the next instalment of potential Carney carnage.
