ForexLive European morning wrap: Pound feels the heat again as Thursday's vote continues to cast its shadow via ForexLive

Forex trading headlines from the European morning session 16 Sept

News:

• BOJ's Kuroda says Japanese economy on course to reach 2% inflation target
• Kuroda says easing will continue until 2% inflation is stable
• Kuroda says fx stability is important
• Kuroda says stronger dollar not a negative for Japanese economy
• BOJ's Kuroda says its vital that Japan secures confidence in fiscal consolidation
• Kuroda says currency moves not posing a problem for Japanese economy
• Japan's Amari says positive economic cycle is being maintained
• Prolonged low inflation would prompt more ECB actions- Liikanen
• ECB will buy ABS products when it has become familiar with the risks says ECB's Liikanen
• Moscovici says he supports “intelligent” ECB policies
• Italy's Renzi says the stress tests will show Italy's banks are the strongest in the EU
• Scotland independence vote getting Spanish government knickers in a twist
• A Scottish Yes vote could delay UK interest rate rises

Data:

• August 2014 UK CPI 1.5% vs 1.5% exp y/y
• UK PPI input nsa Aug m/m -0.6% vs -0.4% exp
• September 2014 German ZEW current conditions 25.4 vs 40.0 exp
• Eurozone ZEW economic sentiment Sept 14.2 vs 21.3 exp
• Eurozone Q2 labour cost index y/y +1.2% vs +0.6% prev

Its been mostly about the pound again this morning after yesterday's slap on the euro and we've seen GBP pairs fall across the board

Cable opened up at 1.6215 and started to chew through decent bids into 1.6200. It wasn't long before stops were triggered and we were quickly at 1.6185 lifting EURGBP to test the 0.7985 resistance from 0.7968. Once broken it was a green flag to 1.6165 and 0.8010 but not without a brief rally to 1.6190 after UK price data, before falling back to 1.6167 only to find support down there once again and rallying back above 1.6190.

Elsewhere USDJPY has drifted off to 107.05 from 107.34 highs as the 107.50 barrier defence continues to cast its own shadow but USDCHF has largely had the morning off around 0.9340 with EURUSD quiet around 1.2940 and EURCHF pinned near 1.2090

AUDUSD had a wobble after its post-RBA rally but once again held key support around 0.8985 and we were soon back above 0.9015 while USDCAD has spent the session drifting down from 1.0970 back near o/n lows around 1.0940. NZDUSD has also drifted lower from 0.8175 to 0.8144 before finding a few buyers.

All in all there's been a fair bit going on as the countdown the week's main events continues

posted via ForexLive