Daily FX Trading Update: BOE Minutes to Direct GBP Action – Apr. 22, 2015

Daily FX Trading Update: BOE Minutes to Direct GBP Action - Apr. 22, 2015

The US dollar was unable to pick a clear direction in recent FX trading sessions, as the lack of data kept risk sentiment in play. Updates on the Greek debt talks and potential scenarios continued to keep traders on their toes, but today’s release of the US existing home sales and crude oil inventories report could pave the way for extended dollar moves.

The euro traded carefully against its FX trading counterparts, as traders are still awaiting the outcome of the Eurogroup meetings later this week. Greek government officials have been given until the end of the week to submit their latest set of revised economic reforms before securing the next set of bailout funds and avoiding a default. It appears that traders are hopeful that the creditors would relax some of the requirements or forgive a part of Greece’s debt in order to prevent a crisis. Data from the euro zone was mixed, as the German ZEW index slumped from 54.8 to 53.3 while the euro zone ZEW index improved from 62.4 to 64.8.

FX Trading News

The pound was stuck in consolidation to most of its FX trading counterparts, with traders staying on their toes ahead of the release of the BOE minutes in today’s London trading session. A shift to a less hawkish bias is expected, as inflation and employment reports haven’t been impressive. However, if BOE Governor Carney retains his upbeat outlook, the pound might be able to resume its climb.

The franc struggled to regain ground in recent FX trading due to the lack of top-tier reports and relevant updates. Swiss ZEW economic expectations data are up for release today and the index is slated to improve from the previous -37.9 reading. If so, the franc might be able to regain ground.

The yen weakened to the dollar and most of its FX trading rivals when risk appetite picked up in recent trading. There have been no major reports released from Japan then while today’s trade balance showed a stronger than expected reading. No other reports are lined up from Japan, which means that risk sentiment could take over.

The comdolls had a strong start today, as Australia’s CPI readings came in line with expectations. Quarterly CPI held steady at 0.2% while the trimmed mean CPI showed a 0.6% reading as expected, dashing hopes of a rate cut in the next policy meeting. New Zealand visitor arrivals data is due in the next Asian trading session.

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

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.