Forex trading headlines from the European morning session 6 Oct
News:
- Japan’s Abe says there are positive and negative effects of weak yen
- Japan’s Aso noted that USDJPY at 108-109 is “not particularly weak”
- BOJ’s Kuroda notes export volumes struggling to rise
- ECB’s Jazbec says they do not have mandate to support growth
- Germany reject use of ESM bailout for Eurozone investments
- ECB’s Costa says Portugal must meet budget deficit targets
- EU Commission likely to reject French 2015 budget plans
- French PM Valls wants shops to open on a Sunday
- German lawmakers to vote on Irish IMF plan on 8 October
Data:
- German factory orders Aug m/m -5.7% vs -2.6% exp
- Eurozone Sentix investor confidence Oct -13.7 vs -11 exp
- Nikkei closes up +1.16% at 15890.95
In what has been a lack-lustre start to the week we’ve seen the euro chew its way higher despite weaker than expected data and overall the greenback has lost a little love in the house.
EURUSD opened around 1.2515 and ground its way to 1.2522, then 1.2530 then failed at 1.2550 only to come back for another attempt and posted 1.2559. EURGBP was in early demand from 0. 7835 to 0.7948 then similarly came back for another crack at 0.7850 to take out the offers into 0.7860.
GBPUSD was capped by the EURGBP buying and dipped to 1.5965 from 1.5987 only to then bounce back to 1.5990 before running out of steam, while USDJPY has drifted lower to 109.30 with a large option expiry looming today 109.00. USDCHF too has found a few sellers to test support at 0.9650 from 0.9675
AUDUSD had an early rally from 0.8690 to 0.8734 before running into offers but made another attempt later and posted 0.8737 so far, while USDCAD has drifted to 1.1214 from 1.1240 and NZDUSD rallied from 0.7760 to 0.7792 highs before running out of steam.
Not a lot left on the data front so we wait to see what our North American friends make of it all.
