Forex news for August 27, 2015:

EUR/USD was under constant pressure after breaking the 200-dma yesterday. The European low of 1.1275 gave way after US GDP and that ran stops down to 1.1230. Some small bounces were sold in an eventual decline to 1.1203. Bids at the big figure held and the pair rebounded to 1.1264 as stocks struggled late.

USD/JPY was the big story in US trading. GDP sparked a move to 120.60 from 120.10 but most of it retraced until the stock market opened and shares began to rally. USD/JPY was on the leading edge of the move as it ripped to 121.40 before late risk aversion took it back down to 119.79.

Cable fell for the third day and broke the August low of 1.5424. A second wave of selling knocked it through 1.54 down to 1.5370 at the lows. The late rebound was more subdued in GBP/USD but it still recovered to 1.5420.

The biggest story of all was oil as shorts were blown out in a 10% squeeze to $42. It was a steady climb rather than a quick move and it only goes a small way towards mitigating the recent losses. The rally-sellers have been repeatedly rewarded over the past month but they were smashed today.

As you would expect, the oil rally underpinned the Canadian dollar. The odds of a BOC cut in Sept were halved to 22% today. Still, after falling to 1.3180, the pair rebounded to 1.3239 in a sign that the market isn't quite convinced that good times are ahead in Canada.

EUR/CHF was a surprising mover once again as better risk appetite drove a rally in the pair. It cruised to 1.0865 from 1.0775, almost all of it in US trading.

In a few hours, Greg Michalowski will be hosting a free webinar on how to navigate the recent FX moves. Sign up here.