Forex news from the European morning session 24 August
News:
- UK's Osborne says China doing all it can to stabilise market
- China expects economic growth to be stable in H2 2015 - NDRC
- China slowdown has currency effects on Germany
- BOJ will sit on their hands while the market throws a wobbly
- Syriza breakaway party will get the mandate to form a government shortly
- Greek bailout has knock-on effect for the Dutch government
- CBI raises UK growth forecasts
- New Zealand's Key says RBNZ should have said interest rates won't stay low forever
- Barrier options in play on EURUSD and AUDUSD
- USDJPY tumbles as risk-aversion continues
- European equity markets open lower 24 August
- Option expiries 10am NY cut today 24 August
Data:
- Japan leading index June final 106.50 vs 107.2 prev
- Nikkei 225 closes down -4.61% at 18,540.68
It's been a lively start to the week understandably given the 8.5% losses on Chinese equity markets, the largest one-day fall since Feb 2007
We started off with a euro sell-off as EURUSD failed to breach barrier option resistance at 1.1500 and the Shanghai Comp Index started to pare some losses. The pair came down to 1.1422 dragging other euro pairs with it but it wasn't long before buyers returned and we were testing 1.1500 again with EURGBP posting highs of 0.7338 and EURJPY testing offers into 139.00
With the euro failing again it was time for USDJPY to take the strain and we we triggered stop losses through 120.70 and 120.40 before running into fresh demand around 120.20. We've now seen more USD selling with USDJPY now testing 120.00 as EURJPY falls through 138.00 and USDCHF down to 0.9390 after a spirited rally to 0.9455 from 0.9364 Asian lows.EURCHF has dipped below 1.0800 again after posting 1.0860
Cable has been spun around by EURGBP first capped at 1.5700 then breaking through only to run into the strong offers at 1.5730. Two attempts to breach have so far failed but GBPUSD has bids in the dip as EURGBP stays closer to 0.7300
USDCAD has continued its journey higher and broken out of the recent 1.3000-1.3200 range as oil prices continue to fall while AUDUSD found strong barrier option support at 0.7200 and rallied to 0.7273 before running into fresh sellers to post 0.7210. NZDUSD fell from 0.6680 to find support around 0.6600 but fresh offers into 0.6625 has meant a further fall to 0.6552
A real mixed box of frogs with no data out today but this market needs none of that right now to keep traders on their toes
