Forex news from the European morning session 18 August

  • News:
  • Tsipras considers postponing the no-confidence vote on him and his government
  • Spain's De Guindos sees bailout execution risk in Greece given political background
  • Abe advisor Honda sees no need to expand stimulus now
  • Greece eases some controls on capital movements
  • Spain's Linde says Eurozone seeing a sustained recovery
  • Pound holds gains after stronger than expected inflation data
  • Option expiries 10am NY cut today 18 August

Data:

  • UK CPI July mm -0.2% vs -0.3% exp
  • UK PPI input July mm nsa -0.9% vs-1.9% exp
  • Nikkei 225 closes down - 0.32% at 20,554.47

It's been all about the pound this morning since the UK inflation data after an early wobble from the euro

The session started with a general demand for the greenback that saw EURUSD test strong support around 1.1050 and cable down to 1.5562 but after holding those levels we had little of note until UK CPI sent the pound sharply higher

An initial test of 1.5650 from 1.5585 came to a temporary end at 1.5643 but second wave buying from 1.5635 saw a steady climb into the key res/offers around 1.5700 before finally popping. Stop losses saw a rally to 1.5718 in a rush but it's been a gradual move lower since

EURGBP had good tech support/bids between 0.7050-60 and eventually popped to post 0.7040 just above the next line at 0.7035. All that after looking perky early on to post 0.7117. Overall the pound has felt the love albeit running out of a little steam as US trading gets under way

USDJPY had a wobble to 124.18 after failing above 124.50 while USDCHF has been pinned around 0.9775 with an option expiry casting its shadow

USDCAD has been in tight range between 1.3090 and 1.3125 with AUDUSD and NZDUSD also on the back foot as commodity currencies still remain under pressure

US housing data to follow at 12.30 GMT should help keep things ticking over