Forex news from the European morning session 7 August
News:
- BOE's Broadbent says there is currently no urgency to hike interest rates
- Broadbent says rise in sterling not mainly due to BOE rhetoric
EU wants a Greek deal by the 20th August deadline ideally
PBOC repeats it commitment to purse a prudent monetary policy
- SNB forex reserves end-July CHF 531.82bln vs 516.04bln end-June
- BOJ's Kuroda says weakness in production and exports is temporary
- Kuroda says oil price depends on supply and demand
- China Q2 current account surplus prelim USD 76.6bln
- Japan Post says banking unit cut JGB holdings to 49.2% of portfolio vs 51.8%
- UBS pushes back its BOE rate hike forecast to February
- Option expiries 10am NY cut today 7 August
Data:
- June 2015 UK trade balance -9.184bn vs -9.30bn exp
- German trade balance June EUR 24.0bln vs 21.0bln exp
- Swiss unemployment rate July 3.1% as exp
- German industrial production June mm -1.4% vs +0.3% exp
- France manufacturing production June mm -0.7% vs +0.2% exp
- French trade balance June EUR-2.658bln vs -3.634bln exp
- Greece CPI July yy -2.2% vs -2.0% exp
It's been another quiet session for the most part as traders, those not already enjoying holidays, keep their powder dry for the eagerly awaited NFPs at 12.30 GMT
EURUSD had an early wobble but then rallied to test the 1.0950 res/offers dragging EURGBP with it to 0.7064 from 0.7032 and that demand put a little pressure on cable down to 1.5488
We've since seen a reversal in those pairs back to 1.0921 and 0.7035 while GBPUSD has returned to 1.5520 from whence it came
USDJPY looked ok around 124.75 but the euro retreat added some downward pressure through EURJPY and we've seen a dip to 124.64 session lows while USDCHF has still has an SNB-underpinned bid above 0.9800. EURCHF is making further headway and so far posted highs of 1.0750
USDCAD has been treading water again trapped in a1.3110-30 range while AUDUSD has made steady progress from 0.7360 to 0.7387 with NZDUSD also edging higher from 0.6550 to 0.6571
The expected fumbling around before the main event
