The forex trading headlines for the European session
- Euro gets an early lift but sellers hold the rally
- UK business lending set to rise by 3% in 2013
- Moody’s says it’s still too early to know if Italy will need ECB/ESM help
- German trade association cuts 2013 export growth forecast to 3% from 5%
- Eurozone consumer sentiment april -22.3% vs -22.3 exp but march revised lower
- Italian bond auction sells EUR 6 bln at lowest yields since october 2010
- Italian consumer confidence falls in april to 87.6 vs 88.9 exp
- Italian wage inflation march m/m 0.0% y/y -1.4% both as expected
A nervous start to the week understandably but one that’s seen the euro well supported on the back of the relief that Italy looks set to move forward with a new government, and cable continue its rally after breaking up through 1.5500 in thin Asian trading.
EURUSD has rallied from 1.3045 to test strong sell interest at 1.3100 with more lurking behind to 1.3120. Asian and middle eastern names noted sellers. Similarly EURJPY had a decent move up to 128.34 giving USDJPY a lift to 97.97 from 97.60 but strong sell interest at 128.50 has sent both pairs lower again.
Cable continues to enjoy its time in the sun too and, having broken up through 1.5500 in Asia has risen further to test the next barrier at 1.5550 with a high-post of 1.5546 before falling back. Against the euro though it’s given up some ground from 0.8405 to 0.8430 as a combination of better euro sentiment and the usual month-end buying demand expectations have put a base on the pair again.
AUDUSD had a decent rally to 1.0345 but fell back as it too run out of steam in the face of decent selling interest.
All in all a session that began brightly but then faded in the wake of any fresh impetus, and we now await German and US CPI with the jury nicely poised.