Forex trading headlines from the European morning session 7 Oct
News:
- BOJ leaves monetary policy on hold but notes weakness in production
- BOJ sees Japanese CPI around 1.25% for some time
- Kuroda: CPI to pick up in H2 of FY2014
- Kuroda: BOJ aiming for 2% inflation with 2 years in mind
- Kuroda: No change in view that prices will continue rising
- Kuroda: GDP growth seen positive in Q3 after Q2 contraction
- BOJ’s Kuroda says economy is gradually recovering
- Japan’s Abe says weak yen not the only factor in rising price of energy
- Japan’s Amari says govt is trying to minimize damage of weak yen on companies
- Buba’s Dombret says there are costs and risks that come with ECB measures
- Italian PM Renzi says govt will call for confidence vote on labour act
- Troika leaves Athens a day early, unable to come to an agreement
- BOE says Q3 mortgage availability fell for first time since 2012
- ECB financing to Portugese banks falls in Sept
- SNB foreign currency reserves Sept CHF 462.2 bln vs 457.5 exp
- Germany lays the law down ahead of EU summit
Data:
- German industrial production Aug m/m SA -4.0 % vs -1.5% exp
- August 2014 UK industrial production 0.0% vs 0.0% exp m/m
- French budget deficit Aug EUR -94.1bln vs -84.1bln prev
- Swiss retail sales Aug yy +1.9% vs 0.9% exp
- Swiss CPI Sept mm +0.1% vs +0.2% exp
- Japanese leading index Aug prov 104.00 as exp
- Nikkei closes down 0.67% at 15,783.83
What started off as a gentle continuation of yesterday’s USD squeeze soon turned into a bit of a panic attack and we’ve seen a volatile session that really leaves us none the wiser.
USDJPY dribbled lower then accelerated through 109.00 to 108.80, wiping its feet before falling again to test 108.30 support after the BOJ decision to keep policy on hold.
GBPUSD caught the scent of a serious squeeze and surged from 1.6080 to 1.6117 after triggering stops through 1.6110. We saw a retreat to 1.6080 and then attempts to rally back above 1.6100 but to no avail. USD buyers returned and cable was soon enough looking at 1.6045 again
EURUSD was also on the rise from the off and posted 1.2665 only then to come back under pressure and posted 1.2583 after chewing through the bids at 1.2600. EURGBP has had a look at 0.7835 support from 0.7860 while EURJPY has tested strong support around 136.80 but also held so far.
USDCHF found sellers down to 0.9574 as EURCHF rallied quickly to 1.2140 from 1.2125 only to fall back to look at 1.2103. AUDUSD has drifted back toward 0.8750 but found a few EURAUD related bids while USDCAD drifted off to 1.1140 before surging again to 1.1180 only to retreat.
I said in the headline blink and you miss it but there’s been opportunity. Ever thus in volatile markets.