ForexLive European Morning Wrap – Yen Strength as Euro Weakens Further. Pound Eventually Finds a Few Buyers
Yen strengthens in rapid moves. Japanese exporters triggering stop-loss selling
Weaker than expected EZ flash PMI data drives Euro lower
UK PSNBR shows improvement and helps to underpin the P ound
AUDUSD slides to 4 month lows
USDCAD up to 7 month highs
The theme of the morning has been Yen strength as the falling Euro and Pound have given Yen crosses a bit of a wake-up call and shunt lower.
Japanese exporters are cited as main protaganists but we've been triggering stop-loss sell orders on USDJPY and EURJPY all morning, most notably below 93.30 and 122.80 respectively. Finding some support at the moment but rallies are expected to be sold into.
Weaker than expected French, German and Eurozone flash PMI data for gave the Euro another shove lower after last night's post-FOMC move and gave further momentum to the EURJPY selling. So far low traded 1.3168 and 122.25 respectively.
The Pound has found some support today after its sharp falls in the last 24 hours, given further momentum after some better than expected Public Sector Net Borrowing figures. Cable posted session lows of 1.5131 before moving back higher as EURGBP selling gained momentum the PMI data. So far we've cleared out a few sell orders at 1.5220, 1.5240 and 1.5250 to post session highs of 1.5264. EURGBP eventually broke strong technical support around 0.8650-55, and falling to 0.8620, giving cable another shove higher.
The Aussie and Canadian dollars have also been in for some rough treatment this morning after last night's FOMC-driven moves and have posted 1.0225 and 1.0202 respectively before recovering a little.
All in all a less frenetic session with little on the newswires to move prices sharply in either direction, but it's still been a morning of signifcant moves nonetheless.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.