Forex news from the European morning session 13 August
News:
- PBOC advisor Huang says yuan unlikely to fall 10%
- PBOC reported to be selling USDCNY into the close
- EU Commission says final decision on the Greek bailout deal in the hands of Eurogroup tomorrow
- Germany will consider Greek debt relief but rules out a haircut
- Finland's Stubb says he's optimistic that a Greek deal will be reached
- Greece will review bailout every three months
- Japan to hold a special cabinet meeting Friday at 08.00 GMT
- Chinese exports forecast to grow for full year 2015
- Preview - ECB Minutes out at 11.30 GMT
- Large EURGBP option expiry today now in play
- Option expiries 10am NY cut today 13 August
Data:
- Germany CPI July final mm +0.2% as exp
- France CPI July final mm -0.4% as exp
- Spain CPI July final mm -0.9% vs -1.0% prev
- Greek Q2 GDP qq advance +0.8% vs -0.5% exp
- Greek central government deficit Jan-July €1.02bln
- Nikkei 225 closes up +0.99% at 20,595.55
It's been a steadier session today with early euro pressure on option related selling but been trading sideways since, as have all pairs.
EURGBP option expiries for €2.2bln at 0.7100 have drawn the pair to 0.7105 from 0.7135 then bouncing to 0.7123 only to run into fresh sellers
EURUSD has dropped to 1.1106 with another expiry for €700m at 1.1100 coming into play and its rallies have similarly been capped close by above 1.1120
GBPUSD got support above 1.5600 from the falling EURGBP but has sellers above 1.5630 while USDJPY chewed its way through offers at 124.50 only to stall at 124.60
On a more livelier note USDCAD has staged a decent rally from 1.2965 before capping into 1.3020 while AUDUSD and NZD have been in retreat for the most part to post lows of 0.7330 and 0.6570 from 0.7390 and 0.6620
ECB Minutes out shortly and then US retail sales to hopefully kick some life back in on the major pairs