Forex trading headlines from the European morning session 27 Aug
News:
- Germany’s Schaeuble says he thinks Draghi’s comments on growth and austerity have been “over interpreted”
- Former ECB chief Trichet says they have to deliver on TLTROs and ABS
- Japan’s Hamada says BOJ must support economy if recovery is derailed
- Japan Post says it will not harm its JGB portfolio by changing stance
- Italy’s Padoan says they must revise down its economic output growth forecast
- EU needs concrete commitments from France
- IMF’s Lagarde under formal investigation for negligence in French political fraud case
- China to make targeted policy changes to keep economy growing
- Month-end flows behind USD sales
- German 10-year bond yields hit a new record low
Data:
- German import prices July mm -0.4% vs -0.1% exp
- German GFK consumer sentiment Sept 8.6 vs 9.0 exp
- Swiss UBS consumption indicator July 1.66 vs 2.07 prev
- French business climate Aug 96 as exp
- Italian consumer confidence Aug 101.9 vs 104.0 exp
- Nikkei closes up +0.09% at 15,534.82
Month-end USD sales have kicked in this morning and we’ve seen the greenback taken for a ride lower across the board.
EURUSD has climbed to 1.3189 despite weaker data but supported by Schaeuble comments and after holding onto option barrier support at 1.3150 in Asia. GBPUSD has been up to 1.6595 again from 1.6565 with EURGBP giving ground to 0.7943 so far
USDJPY has dipped to 103.86 after failing above 104.15 in Asia with EURJPY testing bids at 136.80, and USDCHF has failed again at 0.9185 to drop to 0.9155 with EURCHF posting 19-month lows of 1.2071.
EURCAD sales in Asia gave USDCAD a shove lower and we saw a drop through 1.0920 triggering stops down through 1.0900 but held so far by the bids at 1.0880-85 and chewing its way back up through 1.0900
Aussie $ has enjoyed more cross-play support sending AUDUSD to eventually test the offers at 0.9350 before retreating while NZDUSD has found buyers but not enough to clear the 0.8385-90 offers .
Plenty going on and we can expect more of the same despite any lack of data direction from across the pond.