Forex trading headlines from the European morning session 2 Oct
News:
- BOE’s Broadbent says UK is still not ready for rate hike
- BOE’s Forbes says data doesn’t show sufficient inflation pressure
- Draghi says ECB is committed to inflation target
- Russian central bank chief says rumours of capital controls are baseless
- Putin says Russia will not impose restrictions on cross-border capital and currency flows
- SNB’s Jordan says they could take additional measures to enforce CHF cap
- France’s Hollande says euro is now at a more ” realistic” level
- EU’s Moscovici says euro’s current exchange rate is ” balanced”
- Nabiullina repeats that Russia won’t fully leave FX market
- EU’s Moscovici says France needs time to heal its economy
- Moscovici says he will ensure “credibility” of EU budget rules
- BOE FPC says it wants more legal power to curb house price boom
- Italian PM Renzi says Italy will respect 3% deficit to GDP limit
- UBS chief Weber sees a weak take-up of ECB’s TLTRO
- RBA annual report leaves markets unfazed
- Markets get a yen for JPY buying
Data:
- UK Markit/CIPS construction PMI Sept 64.2 vs 63.5 exp
- Eurozone July PPI Aug mm -0.1% vs -0.2% exp
- Spanish jobless total rises 19,720 in Sept vs 18,500 exp
- BOJ quarterly public opinion survey sees a downturn in consumer confidence
- Nikkei closes down -2.61% at 15,661.99
It’s been a lively session with far too much to summarize here but here’s the gist.
Pound pressure from the start as we opened on the Asian cable rally to 1.6250 and down we came again, slowly at first then acclerated by dovish BOE comments to test recent key lows around 1.6160 before then triggering stops to 1.6136 excerbated by GBPJPY selling. EURGBP has ploughed a steady path from 0.7790 to test offers/res at 0.7830.
We’ve also seen a wave of JPY buying as Nikkei futures continued to slide which saw USDJPY falling to 108.40, EURJPY to 136.96 and GBPJPY to 175.27 before finding a few buyers and the core pair has bounced to 108.80 again draggin yen pairs with it.
EURUSD has remained supported around 1.2630 after early falls in this mixed up session that saw the US$ all over the shop and EUR pairs too, as traders prepare for the ECB shortly.
AUDUSD and NZDUSD have fallen from Asian highs in a steady retreat while USDCAD has rallied off Asian lows in a steady climb higher before being capped above 1.1130
My summary only tells a fraction of the story but hopefully gives you a decent flavour as we wait now for the Draghster to step up.
