Forex trading headlines from the European session 9 Sept
News:
- BOE’s Carney says time to begin raising rates is geting closer
- BOE’s Carney says rate rise by Spring 2015 is consistent with goal
- Schaeuble says German economic climate has clouded over
- ECB’s Liikanen says they are familiar with ABS products
- German-French paper proposes reviving securitization in Europe
- Schaeuble says ECB needn’t be the main buyer of securitization
Data:
- UK visible trade balance July GBP – 10.186 bln vs -9.1bln exp
- UK industrial production July mm + 0.5% vs +0.2% exp
- French trade balance July sa EUR -5.539 bln vs -5bln exp
- Japanese consumer confidence Aug 41.2 vs 41.5 prev
- Nikkei closes up +0.28% at 15,749.15
It was a question of waiting for the man today but in essence the pound was already in demand from the off after initially veering to the Asian lows of 1.6064
After that we saw solid cable moves back to 1.6100, then 1.6110, then 1.6130 and then a jump to 1.6157 from 1.6120 on Carney’s headline remarks re rate rises in Spring next year
EURGBP had already seen a move lower to 0.7980 from 0.8010 on a combo of weaker euro and pound buying and we’ve held that level but not held the bounce gains around 0.8000 as yet. GBPCHF, GBPJPY and GBPAUD have all had a good morning with highs of 1.5120 171.55 and 1.7400 respectively but have all similarly retreated as cable falls back to 1.6115 again on the reality of the matter in hand, that of the Scottish referendum
Elsewhere the euro had come under fresh attack partly on bearish Schaueble comments and partly just because it was time again to have a pop and we saw EURUSD down to 1.2860 before rallying back toward 1.2900 only to find fresh sellers on that pair and cross plays
USDJPY had an early rally on cross trading and we saw 106.39 from 106.20 but we’ve since seen a retreat to 106.15 with EURJPY falling back to 136.80 and GBPJPY back to 171.00
USDCAD finally popped 1.1000 as Asia was packing up to go home but we’ve seen no follow-through and have dipped to support around 1.0970 so far. AUDUSD and NZDUSD have both survived the overnight attack and have staged rallies only to be met by fresh sellers.
A good and lively session then and the stage is set for more fun and games as the day progresses.
