Forex news from the European morning session 17 February 2015
News:
- Solution possible in 48 hours says Varoufakis
- Spain's de Guindos says Greece has to make clear what it wants to do
- EU's Dijsselbloem says he hopes Greece will ask for an extension to current programme
- Moscovici denies any EU divisions on Greece
- Austria's Schelling says Greece will have to change its position if a deal is to be agreed
- Greece says reaching a deal is totally feasible
- UK's Osborne says it's "crunch time" for Greece
- German govt says withdrawal of heavy weapons in Ukraine should start today as per latest Minsk agreement
- Germany getting ready with the growth tow rope
- Option expiries 10am NY cut 17 Feb
Data:
- January 2015 UK CPI 0.3% vs 0.3% exp y/y
- UK producer input prices Jan mm -3.7% vs -2.5% exp
- February 2015 eurozone ZEW economic sentiment 52.7 vs 45.2 prior
- February 2015 German ZEW economic sentiment 53 vs 55.0 exp
- Italian global trade balance Dec yy EUR+5.756bln vs +3.4bln prev
- Nikkei 225 closes down -0.10% at 17,987.09
The euro understandably had a knock lower yesterday and overnight in Asia on the EU/Greece breakdown but we've seen a recovery this morning on hopes of a deal being done by the week-end, while the pound had its own wobble this morning as inflation data came in softer than forecast.
EURUSD had posted Asian lows of 1.1321 with EURGBP once again testing the key support into 0.7370 but after this morning's recovery on European equity markets on deal hopes and aided by better Eurozone ZEW data we've seen rallies to 1.1449 and 0.7430 respectively. EURJPY has tested the offers at 136.00 from lows of 134.20 with USDJPY holding firm above 118.50 on the risk-on cross demand
The softer UK inflation data gave GBPUSD a knock lower to 1.5332 support areas having already found its way lower from 1.5370, wiping its feet at 1.5350, but was soon finding dip buyers again to return to 1.5365 then testing 1.5400
USDCHF and EURCHF still look well supported amongst continuing talk of the SNB "smoothing" a path higher and the latter has once again tested the key 1.0650 res/offers
USDCAD has fallen lower again to 1.2362 from 1.2440 as oil prices continue to rise again while AUDUSD has found some support on AUDNZD buying and risen back above 0.7800 to post 0.7827.NZDUSD though has had its move higher past 0.7530 res while so far stalling at 0.7444.
Lots going on still and can expect more headline-driven moves as the day continues
