Skip to main content

Market Overview

European Morning Wrap: OK Morning for Euro

Share:

EU's Barroso: Greece is and will remain a member of the euro zone.  European Commission is considering a wider guarantee mechanism to help Greek banks lend again
EU Commission: The Troika of EU/ECB and IMF has decided to return to Greece. To arrive Thursday.  Eurogroup will hold an additional meeting in October to discuss Greece and consider disbursement of next tranche of aid
ECB's Costa: Economic growth will determine Portugal's sustainability of public finances
German August import prices -0.7% m/m, +6.6% y/y, weaker than Reuters' median forecasts of -0.4%, +6.9% respectively
Italy September business confidence slumps to 94.5, some way below 98.6 in August and Reuters' median forecast of 98.1
Fed's Rosengren: With inflation subdued, monetary policy should be focused on employment
Germany slams 'stupid US plans to boost EU rescue funds - AEP at The Telegraph
German ruling coalition faces tricky bailout vote - WSJ

Started in risk off mode and things have slowly shown some general improvement, likes of European stocks and oil recovering early losses.  Against this backdrop euro has done well. EUR/USD up at 1.3655 from early 1.3565, having been as high as 1.3689.  EUR/JPY up at 104.35 from early 103.85.

BIS was seen buying decent amounts down at 1.3595 which helped extend early rally. As reports of a European Commision statement/announcement circulated,  so that well known US investment bank came in scooping up the pairing and we quickly got to 1.3660.

Despite the announcement offering nothing startling we still managed to trip stops through 1.3670 and get to session high  1.3689. ACB was reported notable seller into this latest leg higher and we've subsequently drifted little lower.

Talk of macro funds lying in wait up at 1.3700/10.

Cable up at 1.5665 from early 1.5625, the improvement coming as early risk aversion abated.  EUR/GBP up at .8715 from early .8680.  UK clearer notable buyer of the cross this morning.  Also mutterings that  Bundesbank was in buying as well.  Doing its' month-end shopping early, maybe?.......possibly?

USD/JPY touch lower at 76.40 from early 76.55, but still ensconsed in well-trodden narrow range.  Sell orders clustered 76.90/00, buy stops just above there.  Buy orders seen clustered around 76.25 and then more 76.10 down to 75.95.  Guess if you're gonna buy, might as well be just ahead of the historic low.

AUD/USD up at .9930 from early .9870, in line with general improvement in risk appetite.\

Originally posted at Forex Live Forex Live.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

Related Articles

View Comments and Join the Discussion!

Posted-In: euro global currenciesForex Markets Trading Ideas

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com