Forex trading headlines for the European morning session 24 September
- US Fed’s Dudley says US economy weaker than Fed thought
- BOE ‘s Miles denies that fwd guidance has backfired
- German IFO business climate sept 107.7 vs 108.2 exp prev 107.6
- UK BBA mortgage approvals highest since 2009
- ECB’s Nowotny says exit strategies have to be designed with caution
- ECB’s Nowotny does not rule out further LTRO
- OECD says Eurozone still remains a considerable risk
- OECD says low inflation in China gives scope for easing monetary policy
- EFSF chief Regling says ESM backstop would require treaty change
- Italian non-EU trade balance august flash EUR+0.56 bln vs +2.8 bln prev
- Nikkei closes down 0.07% at 14,732.61
- Shanghai comp index closes down 0.61% at 2207.53
What started off as a very quiet session gradually picked up pace and we’ve seen a wave of USD buying across most pairs but yen strength has also dominated.
USDJPY has fallen to 98.66, having rallied to 99.16 in the first wave of greenback grabbing, as yen-pair selling has been the order of the day since. EURJPY has been down to test 133.00, GBPJPY to 157.82 and AUDJPY to 92.58. Currently steady around 98.80 USDJPY has a large (750m) option expiry today at 99.00 which will no doubt come into play later too.
The pound was the first target for attack with cable dropping quickly from 1.6020 to 1.5990 and then triggered stops down to 1.5971 dragging EURGBP up to 0.8448 from 0.8420 before retreating as the euro also took a thump, accelerated by weaker than expected German IFO. EURUSD was steady at first but has since been sold to 1.3476 having broken down through 1.3500 again.
AUD and NZD have also come in for a slap continuing their Asian trend having both tried to stage a rally of sorts but to no avail.
Little by way of data to shake things up but with traders still undecided on real trend we can expect more volatility to come as positions are quickly unwound.
