Forex trading headlines from the European morning session 25 Sept
News:
- BOE’s Shafik says they may have to move quicker on interest rates if wage increases not accompanied by productivity increases
- Fed’s Fisher says he sees interest rate hikes sooner rather than later
- Draghi says ECB takes price-stability mandate very seriously
- Draghi says greater integration is the way ahead for the Eurozone
- Fed’s Fisher says US is starting to see extreme risk taking in junk bonds
- Germany’s Schaeuble says he’s unhappy about debate on ECB bond buying
- EU’s Dijsselbloem says ECB measures will make an impact at the end of 2014 and early 2015
- S&P affirms Japanese ratings at AA-/AA-1
- Kiwi still under the cosh after Wheeler comments
- Cable testing good support again
- Game on for euro bears as the technical floor collapses
Data:
- Eurozone M3 money supply Aug y/y +2.0% vs +1.9% exp
- September 2014 UK CBI distributive trades sales 31 vs 30 exp
- Spanish PPI Aug mm -0.1% as exp
- Italian retail sales July mm -0.1% vs 0.0% exp
- August 2014 Italian wages flat on the month and unchanged at 1.1% y/y
- Nikkei closes up 1.28% at 16,374.14
Wow, where to start after a session that saw key levels breached almost across the board
The kiwi $ was already under pressure and had a further drop to 0.7943 from 0.7985 while the USD bulls ran amok and that meant EURUSD down to 22- month lows of 1.2696 from 1.2765 and GBPUSD back testing recent lows around 1.6285.
EURGBP gave up the battle to stay above 0.7800-10 and we’ve seen 0.7789 from 0.7825 while EURJPY has been down to 138.83
USDJPY did little in its own right but remains well supported above 109 even it can’t get through 109.50 barrier option defence. USDCHF had a look above 0.9500 but has retreated as EURUSD found bids around 1.2700
USDCAD has breached 1.1100 but faces more offers between 20-50 while AUDUSD had its own follow-through from the Asian wobble and has posted 0.8791 before boucing to 0.8822 but as in all the other rebounds has looked unconvincing so far
US durable goods orders data is now poised to make a bigger impact than we might have hoped with pairs delicately posed after the session’s shake-up.
