ForexLive European morning wrap: Markets still edgy as we close the week via ForexLive

Forex trading headlines from the European morning session 11 July

 News:

• EU's O'Connor says they are confident the Portugese banking problems will be managed
• Spain's Latorre says data shows Spanish recovery is stronger than expected
• Market reaction to Espirito highlights lack of faith in EU plans to shore up banks
• ECB to tell banks that test results are very close to publication
• Brent crude oil falls on jump of IEA stock data
• IEA says markets look well supplied but OPEC supply risks ” remain extraordinarily high”

Data:

• UK construction output May m/m -1.1% vs +1.2% prev
• German HICP June final m/m +0.4% vs +0.4% exp
• French current account May EUR -3.1bln vs -2.3 bln prev
• Nikkei closes down 0.34% at 15,164.04

We've had tight ranges again but there's a distinct air of dancing on hot coals as sentiment switches on a whim and equity markets still on the back foot

GBPUSD had an early rally to 1.7150 from 1.7125 only to fall back to 1.7120 after weaker construction data but we've been back arond 1.7140 as offers come into EURGBP with the euro taking its cue from falling equity markets again.

EURUSD has been up to 1.3625 as markets opened higher but back down to 1.3603 as BES shares have fallen again after trading was resumed and an 11% intial rise erased.

More to follow

posted via ForexLive