Forex news from the European morning session 18 June 2015

News:

  • French fin min says Grexit would be a "total catastrophe for Greece"
  • Merkel says a Greek deal "is still possible"
  • Tsipras says a "blind insistence"on pension cuts would only worsen the Greek crisis
  • EU and ECB reportedly drafting a debt relief statement - Livesquawk
  • IMF's Lagarde says Greek program needs to be credible
  • Aid for Greece would continue after exit says Germany's Gabriel
  • BUBA head Weidmann says Greek situation very different to that of Italy and Spain
  • ECB says it will firmly implement all monetary policy decisions
  • SNB leaves interest rates unchanged
  • SNB's Jordan says franc still significantly overvalued
  • SNB's Jordan says CHF likely to weaken due to economic slowdown
  • More from Jordan : The end of EURCHF floor was a question of when, not if
  • SNB's Zurbruegg says forex market actions and negative interest rates are "mutually reinforcing" measures
  • SNB's Zurbruegg says no immediate need to influence monetary landscape
  • SNB says strong CHF reduces growth in Switzerland
  • SNB says negative rates will help weaken franc over time
  • Citigroup brings forward Fed hike expectations to Sept 2015
  • Goldman Sachs pushes back Fed rate hike to Dec 2015
  • Will new ECB TLTRO show that lending is picking up in the Eurozone?
  • Option expiries 10am NY cut today 18 June

Data:

  • May 2015 UK retail sales 0.2% vs 0.0% exp m/m
  • Eurozone wages jump in Q1 2015
  • Swiss trade balance May CHF +3.433bln vs +2.72bln exp
  • Nikkei 225 closes down 1.13% at 19,990.82

It's been a bit of a rout for the greenback this morning as European desks take on board the implications of Yellen's statement

It all kicked off as Europe got underway and we saw a rapid rise in GBPUSD from to 1.5815 to 1.5880 and EURUSD from 1.1340 to 1.1409 with USDJPY at first finding some cross demand but then breaking down through 123.00

We've since seen further moves with GBPUSD posting 1.5930 after better than expected retail sales data, EURUSD to 1.1420 and USDJPY chewing through bids to post 122.55 with EURJPY failing to get back above 140.00

USDCHF was holding around 0.9200 but the SNB left interest rates on hold and despite some usual rhetoric the longs got out sending the pair to 0.9153 as I type. EURCHF has also drifted lower to 1.0438

EURGBP tested 0.7150 support as the pound soared but since been treading water around 0.7170

AUDUSD chewed through offers into 0.7800 but then popped and triggered stops to post highs of 0.7842 so far while even NZDUSD has found a little self-respect after its GDP knock-down to post 0.6960 from 0.6890

USDCAD has seen a steady decline to current lows of 1.2154 having failed above 1.2230

US CPI coming up at 08.30 GMT and we can't rule out a USD reversal on stronger than expected data for the moment the US$ bears are happily in control