Forex news from the European morning session 28 May 2015

News:

  • Greek govt says they are near a deal
  • Varoufakis says Greek govt wants debt re-structuring
  • Constancio says ECB is financing the Greek banking sector to the tune of EUR 114bln
  • ECB's Nowotny says ultra-low rates are not long-term equilibrium
  • Nowotny says the discussion on whether to buy more assets before summer was purely technical
  • IMF's Lagarde says there is much work to do still on GreeceKuroda says yen might rise if Japanese economy grows in next 2 years as BOJ expects
  • US Fed's Williams says monetary policy is "poorly suited" to dealing with financial stability concerns
  • Fed's Williams says rate hike likely to be later this year
  • Fed's Williams says they need to collect more data before making a decision on rates
  • ECB's Nowotny says gold relocation not related to Brexit fears
  • ECB says Eurozone systemic stress remained low in past 6 months amid improving but still subdued growth
  • UK's Hammond says treaty change needed as part of EU renegotiation
  • Option expiries 10am NY cut today 28 May

Data:

  • Q1 2015 UK revised GDP 0.3% vs 0.4% exp q/q
  • April 2015 UK BBA mortgage approvals 42116 vs 39300 exp
  • Spain Q1 GDP final qq +0.9% as exp
  • German import price index April mm +0.6% vs +0.5% exp
  • Swiss trade balance April CHF +2.86bln vs +2.5bln prev
  • May 2015 eurzone economic sentiment 103.8 vs 103.5 exp
  • Italy consumer confidence May 105.7 va 108.2 exp
  • Nikkei 225 closes up +0.39% at 20,551.46

We've seen some good two-way business this morning but the USD demand is prevailing as the pound slips back, the euro finds a bit of Greek-based love, and USDJPY finds good support in the dips

A late dip in the Nikkei saw USDJPY drop to 123.69 from 124.15 and this gave a bit of hope to GBPUSD that rose to 1.5386, EURUSD to 1.0951 and even the ailing AUD to 0.7715.

But then we saw some profit-taking as the moves ran out steam and the pound got a further kicking, albeit eventually, on a double wammy of EURGBP demand and an unrevised Q1 GDP reading.

EURGBP offers popped at 0.7130 and cued a move lower into 1.5300 and now 1.5270 with EURGBP posting 0.7153 before retreating as EURUSD gives up its gains to post lows of 1.0887

USDJPY is now taking new session highs at 124.30 with USDCAD trying to get through 1.2500 and USDCHF finding resistance at 0.9500

AUDUSD and NZDUSD haven't needed any encouragement to head lower after their initial rally and now sit on session lows of 0.7636 and 0.7175

US data ahead to throw into the mix but this market remains one dancing on hot coals