Forex news from the European morning session 12 June 2015

News:

  • Greece hopes to clinch a deal with lenders at the 18 June Eurogroup meeting
  • EURUSD through 1.1200 as Merkel laments strong euro and Dijsselbloem says Greek proposal rejection is not an option
  • EU's Dijsselbloem says Greece must be prepared for difficult measures
  • EU's Juncker says talks with Greece will re-start, on a technical level first
  • Greece still sticking to their red lines for a deal
  • EU's Juncker says Greek solution is necessary in coming days
  • Germany working to keep Greece in Eurozone
  • EU spokesman says there are still differences on Greek proposal that need to be bridged
  • Merkel says it's the ECB's job to keep an eye on inflation
  • BOE's McCafferty says inflation likely to remain around zero for a few months
  • Swiss KOF institute sees 2015 GDP at +0.4%
  • Morgan Stanley dial down on USD longs as US data fails to keep the rally intact
  • Option expiries 10am NY cut today 12 June

Data:

  • German wholesale price index May mm +0.5% vs +0.4% prev
  • April 2015 Eurozone industrial production 0.1% vs 0.3% exp m/m
  • UK construction output April mm SA -0.8% vs +0.1% exp
  • Spain CPI May final mm +0.5% as exp/flash
  • Japan industrial production April final mm +1.2% vs 1.0% prev
  • Nikkei 225 closes up 0.12% at 20,407.08

How you enjoying your week so far?

Another fragile session saw the euro under pressure near enough from the start on Greek concerns, but then Merkel threw a bit of petrol on the fire with prepared speech comments about concerns over a strong euro on reforms

EURUSD started the session by dipping from 1.1240 to 1.1220 as European desks traded off the Bild article which had been reported here last night and we were treading water when Merkel's comment hit the wires

Cue a rapid drop to 1.1152 before gradually recovering some poise as shorts were quick to cover but we've failed at 1.1200 since. The move lower was seen in all euro pairs and gave USD s general lift too sending cable to 1.5467 as EURGBP held around 0.7200.

USDJPY needed little excuse to grind its way to 123.82 from 123.35 but USDCHF failed into 0.9400 as EURCHF got sold down to 1.0472 and then 1.0440 sending USDCHF to 0.9345 so far from 0.9393

USDCAD enjoyed the ride up to 1.2334 from 1.2290 but ran into strong res/offers at 1.2340 and down we came back to 1.2297n as I type

AUDUSD and NZDUSD have been back-footing all morning but have picked up support/bids into 0.7680 and 0.6950 respectively

US PPI and Michigan consumer sentiment indices to come and we can be assured of more thrills n spills before the week is out