Daily FX Trading Update: Still No Deal for Greek Debt – Apr. 27, 2015

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Daily FX Trading Update: Still No Deal for Greek Debt - Apr. 27, 2015
Forex

The US dollar gave up more FX ground on Friday as risk appetite improved and data from the US economy came in mixed. Headline durable goods orders jumped 4.0% while core durable goods orders showed a worse than expected 0.2% slide. Only the flash services PMI is lined up for today and a dip from 59.2 to 59.1 is expected. Weaker than expected figures could lead to more losses for the dollar again.

The euro managed to gain a bit of support towards the end of the FX trading week even though there was still no deal for Greece’s debt. Germany’s Ifo business climate index came in line with expectations when it climbed from 107.9 to 108.6, reflecting an improvement in sentiment. Data on Germany’s import prices is due today and a 0.5% increase is expected.

FX Trading News

The pound sustained its FX trading climb on Friday as the upbeat BOE minutes allowed the currency to regain ground. There have been no reports released from the UK economy then while today only has the CBI industrial order expectations report on tap. This is slated to climb from 0 to 4 and probably allow the pound to advance further.

The franc struggled to recover on Friday, as SNB head Thomas Jordan reminded markets that they are hoping to shore up economic growth with monetary policy. There are no reports lined up from the Swiss economy then but the franc could take its cue from Greek debt updates and market sentiment.

The yen advanced once more as risk aversion seemed to settle back in the FX trading market at the end of the week. It also helped the yen that BOJ Governor Kuroda has mentioned that they are discussing technical details of an exit strategy. There are no reports due from Japan today, leaving yen traders to price in expectations for the BOJ statement this week.

The comdolls regained some ground in recent FX trading, particularly against the US dollar. There have been no major releases on Friday and none are due today, which means that risk sentiment could be responsible for dictating price action for these pairs. RBA Governor Stevens is set to give a testimony in the US session and probably emphasize the need to keep policy accommodative.

To contact the reporter of the story: James Brennan at james@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.