Forex trading headlines from the European morning session 4 Sept
News:
- ECB looking at launching ABS program worth €500bn
- Kuroda says its very hard to forecast fx rate
- Kuroda says govt and BOJ policy can address post-tax rise weakness
- More from Kuroda: crucial for Japan to continue fiscal health reforms
- Kuroda says not surprising if USD strengthens on different policies
- BOJ’s Kuroda says Japanese economy is recovering moderately
- Dijsselbloem says ECB isn’t at the end of its instruments
- ECB looking at launching ABS program worth €500bn
- Eurogroup head Dijsselbloem says Eurozone revovery is fragile and uneven
- Recent decline in the euro may be helpful says Dijsselbloem
- Germany’s CDU party says Schaeuble will stick to balanced budget goal for 2015
- CBI says UK economic growth will slow in H2 2014
- Japan’s Shiozaki says timeline for GPIF reform still not finalized
Data:
- German factory orders July mm +4.6% vs +1.5% exp
- French ILO Q2 unemployment rate 10.2% as exp
- Nikkei closes down 0.33% at 15,676.18
It was only to be expected given the hype and expectation over today’s ECB announcement but the session has been largely lifeless with only the breaking news/rumour that the ECB will introduce an ABS programme worth €500 bln causing any action of note
EURUSD has just fallen to 1.3120 from 1.3140 on the reports from Reuters sources but it’s rallying again as I type. Earlier better than expected German factory orders had seen a small move from 1.3140 to test 1.3150 but its been painfully slow
GBPUSD has been pinned around 1.6445-50 for the most part with the BOE on today’s undercard while EURGBP has looked downstairs again after failing to breach 0.8000 yesterday
USDJPY had another look at 105.00 on Kuroda comments re USD strength and another hint of further easing to come yet but we’ve come back to down to where it started at 104.85. USDCHF had a rally on the EURUSD drop but has largely been stuck around 0.9180 with EURCHF finding support below 1.2070.
AUD USD and CAD have all had the morning off as all eyes now turn to the Draghmeister
