ForexLive European Wrap: Euro worn down by Greek concerns ahead of weekend vote
German Jan Final HICP -0.5% m/m, +2.3% y/y (unrevised), Dec +0.7% m/m, +2.3% y/y.
German Final Jan CPI -0.4% m/m, +2.1% y/y (revised up from +2.0% y/y), Dec +0.7% m/m, +2.1% y/y
Swiss Jan CPI -0.4% m/m, -0.8% y/y, vs expectations of -0.3% and -0.7%
UK Jan PPI +0.5% m/m, +4.1% (exp 3.7%) y/y
UK Q4 construction output -0.5% q/q, +0.9% y/y
German FinMin Schaeuble: Flexible on Portugal aid terms
Germany's Merkel: Allowing Greece to default would have “uncontrollable consequences”
A rather dull morning with the EUR/USD coming under some pressure ahead of the Greek vote this weekend, but the move lower largely seen as squaring, although some fund selling was reported.
Euro fell to 1.3239 before talk of an Asian sovereign on the bid stemmed the outflows and we bumped about in 1.3239-84 range for the rest of the morning .
There are bids sitting down at 1.3235/40 with sell stops on a break of 1.3230. Offers start from 1.3280 up to 1.3300 where there are a number of option expiries today.
GBP/USD picked up from early lows of 1.5767 to 1.5849 as EUR/GBP fell back from 0.8398 to 0.8362. Cable offers sit up at 1.5880/90 with Bids down at 1.5765/75. PPI data had little overall reaction.
USD/JPY chewed away at offers up to 77.75 from 77.55, but has more staggered all the way up to 78.00. Bids sit at 77.20/30 with sell stops down through 77.20 and 77.00.
EUR/JPY sell stops are down at 102.80 and 102.50 with offers up at 103.25/35. The cross ranged 102.82-103.20
AUD/USD was ground down to 1.0667 from 1.0717 as EUR/AUD kicked up through 1.2400 to 1.2420. O/n Chinese tarde data continuing to dampen AUD sentiment. Good bids sit down at 1.0650
Swiss CPI came in slightly worse than expectations but support around 1.2090 in EUR/CHF contained the losses from 1.2007 when the CPI data was released
Gold was knocked down through stops around 1724/25 to 1715 but has since climbed back to 1722
European bourses were all in the red with losses of around 1%
