Forex news from the European morning session 27 May 2015

News:

  • ECB said to leave Greek ELA ceiling unchaged
  • Japan's Amari says FX moves reflect USD gains rather than JPY falls
  • EU's Dombrovskis says Greek deal needs to be reached quickly
  • UK Queen's Speech: Govt will continue to work on reducing budget deficit
  • US's Jack Lew says it's a mistake to think that Greek contagion is contained
  • Lew: Weak Q1 was anomalous
  • New Bank of England Bill may allow for cut in monetary policy meetings
  • Japan's Aso says ,in general, rapid forex moves are undesirable
  • China can keep economic growth at 7.0% in 2015 - PBOC
  • Japanese government raises consumer spending expectations for the first time in 10 months
  • Iwata says current rises in Japanese stock prices reflect record company profits
  • Spain calls for a change of mandate for ECB
  • Option expiries 10am NY cut today 27 May

Data:

  • German GFK consumer confidence June 10.2 vs 10.0exp
  • French consumer confidence May 93 vs 95 exp
  • Swiss consumption indicator April +1.25 vs 1.34 prev
  • Nikkei 225 closes up +0.17% at 20,472.58

We've seen less volatility than in recent sessions but still some decent price action to be had

USDJPY has led the way helped by a firm Nikkei after an early session wobble here from 123.10 to 122.78 gave US$ sellers some false hope that saw EURGBP at 1.0929 and GBPUSD at 1.5438

But you can't keep the greenback away from the trophy cabinet at the moment and once again it's on the rostrum in pole position as others flounder. USDJPY has taken out a host of offers including a barrier option at 123.50 to post 123.69 EURUSD has fallen back to 1.0875 and GBPUSD to 1.5377 while USDCHF after an early wobble from 0.9520 to 0.9467 has recovered its poise to 0.9504 as the USD demand continues

Yen pairs have generally been wanted too with EURJPY posting highs of 134.79, GBPJPY up to 190.37 and AUDJPY hitting 95.63 giving some support to the core pairs but each has ran out of puff as I type

USDCAD has once again enjoyed the ride up to 1.2466 from 1.2397 helped by a dip in oil price but traders will remain cautious ahead of the BOC interest rate decision.AUDUSD and NZDUSD have both continued to tumble posting 0.7710 and 0.7217 from 0.7769 and 0.7270 weighed down by softer commodity price and USD demand

So, a data-lite US session ahead but the BOC announcement and generally fragile markets will keep things ticking over.