Forex trading headlines from the European morning session 7 October
- China raises concern over US debt ceiling crisis
- Bundesbank’s Dombret says US should deal with fiscal uncertainty asap
- Eurozone sentix index october +6.1 vs +8 exp +6.5 prev
- Greek 2014 budget forecast sees return to growth
- Chinese PM says 7% annual growth sufficient
- Japanese leading indicator august -1.4 vs +0.6 prev
- Japanese coincident indicator -0.1 vs +0.9 prev
- ECB’s Asmussen says Italy would not qualify for OMT
- ECB’s Asmussen says investors are returning to Eurozone
- Nikkei closes down 1.22% at 13,853,32
- US funds boost euro holdings by 16%
Traders have been less than convinced this morning as a new week unfolds and the US shutdown/debt ceiling crisis remains far from being resolved.
Essentially though we’ve seen some recreation of short USD positions now that the week-end uncertainty is out of the way. USDJPY has fallen again to test support lines down to 96.80 dragging EURJPY lower to strong buying interest at 131.50.
EURUSD has had a look above 1.3580 again but retreated from 1.3591 highs while GBPUSD has had a firmer tone all morning and currently sits just below its session highs at 1.6080. EURGBP is therefore lower at 0.8445 having once again failed ahead of the strong sell interest at 0.8480.
AUDUSD found itself on the wrong side of some AUDJPY selling forcing the pair down to 0.9389 before the overall USD-bearish sentiment kicked back in and we’ve rallied once more above 0.9410.
A cautious start to the week, which isn’t going to change any time soon.
