Forex news from the European morning session 29 May 2015

News:

  • EU's Moscovici says time is running short on Greece
  • Varoufakis says Greece and creditors have agreed on most issues
  • Japan's FSA urges banks to prepare for volatility from US Fed rate hike
  • Japan Post to change its investment stance, reduce dependence on JGBs
  • Schaeuble says the G7 talks were sometimes controversial
  • PBOC says they need to pay attention to shadow banking risks
  • Kiwi on the ropes still as NZDUSD posts 5 year lows
  • Option expiries 10am NY cut today 29 May

Data:

  • Spain CPI May flash +0.5% vs +0.2% exp
  • Italy Q1 GDP final qq +0.3% as exp/prev
  • Italy HICP May flash mm +0.2% vs +0.1% exp
  • German retail sales April mm +1.7% vs +1.0% exp
  • Eurozone M3 money supply yy April +5.3% vs +4.9% exp
  • Switizerland Q1 GDP -0.2% vs 0.0% exp
  • French PPI April mm -0.4% vs 0.0% prev
  • Portugal data round-up
  • Greek Q1 GDP final qq -0.2% as prev
  • Spain current account balance March EUR +0.9bln vs -2.0bln prev
  • Switzerland KOF leading indicator May 93.1 vs 89.9 exp
  • May 2015 UK Lloyds business barometer 55 vs 53 prior
  • Japan housing starts April yy +0.4% vs +0.2% exp
  • Nikkei closes up +0.06% at 20,563.15

It's been all about the euro, pound,and kiwi, this morning as month-end flows have a say in price action

The euro began a with a wobble on USD demand but then we saw EURGBP demand on the regular BUBA buying and with the pound knocked off its perch lately it didn't need much persuading to take on res/offers at 0.7165 from 0.7140 and then gathered a head of steam to take out more offers at 0.7185 to [post 0.7198 so far

EURUSD enjoyed the lift higher helped by USDJPY demand giving EURJPY a jack up to test 136.00 and we saw core pairs in demand to 1.0990 from 1.0930 with USDJPY finding bids under 123.70

The EURGBP demand saw cable under the cosh from the off dropping from 1.5330 to 1.5300 then again to 1.5280 then 1.5260 and finally blowing through the key 1.5250 support

Also in retreat was NZDUSD which saw real money selling again to post 5 year lows of 0.7106

AUDUSD found some bids on AUDNZD while USDCAD traded tightly ahead of GDP later

Busy busy busy again and more to come