Forex trading headlines for the European morning session 29 August 2013
- Syria: US and UK governments face increasing opposition to attack now
- EU’s Rehn says it’s premature to say the EZ crisis is over
- Vodafone deal talk supports the pound
- Gold lower as safe haven demand diminishes
- ECB’s Nowotny says forward guidance assures market of low rates for foreseeable future
- EU’s Rehn says banking union on track
- Indian rupee stages a recovery after RBIprovides USD directly to oil companies
- German unemployment august nsa 2.946 mln vs 2.9 mln exp/prev
- Indian PM will make statement on economy on friday
- BOJ’s Morimoto says Japan’s economy moving in line with forecast
- Nikkei closes up 0.91% at 13,459.71
- French business climate august 98 vs 96 exp 95 prev
- Swiss Q2 nNFPs 4.166 mln vs 4.152 mln prev
- Italian consumer confidence august 98.3 vs 97.8 exp 97.4 prev
- Italian business confidence august 92.9 vs 92.5 exp 91.8 prev
As the gung-ho leaders of the western world are forced onto the back foot so the demand for safe havens has reduced and we’ve seen a decent correction this morning in thin and volatile conditions.
USDJPY has been up to 98.27 and USDCHF up to test strong resistance again at 0.9300 having dipped as low as 0.9168 yesterday. Gold too is on the retreat at $ 1405.
Stock markets are also performing better with Vodafone posting 12year highs on confirmation it’s in talks to sell its 45% Verizon stake worth c.USD 130 bln
The pound has picked up a few bids on top of yesterday’s reversal higher after Mr C’s less than dovish remarks. GBPUSD was sold off again this morning on the overall USD demand before finding the Vodafone based support around 1.5500
EURUSD has tumbled too accelerated by dovish/cautious talk from EU chief economist Rehn earlier which saw a slide in the euro across the board. EURUSD triggered stops below 1.3290-00 and we dipped to 1.3265 in a rush. EURGBP was slapped through good support to reach 0.8544 before finding buyers again, led by EURUSD having strong support at 1.3250 based on a large option expiry today.
AUDUSD also got sold off from 0.8977 but has spent most of the session in a tight range around 0.8935. NZDUSD told a similar story
US Q2 GDP revision and weekly jobless claims will add to the fire this afternoon so stand by for more opportunities.
