Forex trading headlines from the European morning session 9 Oct
News:
- Bank of England leaves interest rates unchanged at 0.5%
- SNB’s Danthine says CHF cap still key for adequate monetary conditions
- Negative rates are a possibility but don’t make up part of our principle scenario says SNB’s Danthine
- SNB’s Danthine says they’ve not intervened on cap for months
- ECB Monthly Report: Eurozone growth has weakened
- German institute slashes growth forecast to 1.3% from 1.9% for 2014
- UK’s Osborne says the Eurozone risks slipping back into crisis
- IMF’s Shinohara says BOJ doesn’t need to ease policy further
- Is the European Central Bank ECB running out of straws to clutch on saving Europe?
Data:
- German trade balance Aug mm EUR +14.1bln vs +17.7 bln exp
- French trade deficit Aug EUR -5.783bln vs -5.5 bln exp
- UK mortgage approvals -3.3% in August – CML
- Greek CPI Sept yy -0.8% vs -0.3% exp
- Greek unemployment rate July 26.4% vs 26.8% exp
- Japanese machine tool orders Sept prov +34.8% vs +35.5% prev
- Nikkei closes down -0.75% at 15,478.93
Another interesting session has seen the US$ largely under pressure on all fronts but it’s not been that straight forward.
USDJPY finally broke down through 107.75 to post 107.60 before rallying again to 107.90 before falling again the past hour to 107.55 with a large option expiry at 107.50 casting its shadow. Yen pairs have had a similar journey.
The euro shrugged off bad data to test higher and we saw EURUSD at 1.2800 and EURGBP at 0.7895 before a reality check set in again and we’ve drifted lower across the board
GBPUSD had an early test of 1.6150 as EURGBP rallied but that was short-lived and amidst USD selling we saw cable breach 1.6200 before dipping to 1.6190 only to bounce again to 1.6221 and again after the BOE announcement from 1.6205
USDCHF hasn’t escaped the USD selling and posted lows of 0.9468 before rallying to 0.9500 only to drift off again and EURCHF had a look above 1.2120 again on Danthine comments but it too has dipped lower since.
USDCAD has spent most of the session between 1.1090-1120 while AUDUSD has found a base at 0.8840 but not enough energy to gey through 0.8900 and NZDUSD too had support at 0.7930 but sell interest above 0.7970.
So it’s back across the pond to look for our next inspiration
