Forex trading headlines from the European morning session 14 Oct
News:
- Japan’s Takenaka says USDJPY around 110 not excessively weak
- Japan’s Suga declines to comment on yen level
- ZEW’s Fuest says negative Q3 growth in Germany can not be ruled out
- Catalonia abandons its independence referendum plans for Nov 9
- Catalonia will hold a “consultation of citizens” on Nov 9
- Spain’s Rajoy says economic growth to continue in Q3 and and Q4
- Central bank of Russia raises its rouble band again
Data:
- September 2014 UK CPI 1.2% vs 1.4% exp y/y
- October 2014 German ZEW economic sentiment -3.6 vs 1.0 exp
- September 2014 UK PPI -0.6% vs -0.4% exp m/m
- August 2014 eurozone industrial production -1.8% vs -1.6% exp m/m
- French CPI Sept m/m -0.4% vs -0.3% exp
- French current account balance Aug EUR-4.5bln vs -2.2bln prev
- Spanish CPI Sept mm +0.2% vs +0.1% exp
- Swiss producer import prices Sept mm -0.1% vs -0.2% prev
- Nikkei closes down -2.38% at 14936.51
A busy morning with plenty of opportunity whilst also fraught with danger on some sharp moves that has seen the US $ regain its mojo yet again but more by default than creditable reason, with yen pairs all falling sharply.
The USD selling once again found itself shortlived and USDJPY climbed to 107.30 only to run into fresh sellers as yen pairs generally came under pressure and we’ve been back down to 106.85, making light of fresh bids at 107.00 along the way.
GBPUSD and EURUSD had mixed early session performances with EURGBP better bid through 0.7935 resistance but GBPUSD hanging on to the bids at 1.6050.But then came some more European equity market jitters and it was the euro that weakened first from 1.273o through support at 1.2700 to 1.2670 accelerated by weaker data to lows of 1.2640 so far. GBPUSD meanwhile was dragged down through 1.6050 then dropped sharply to 1.5985 from 1.6025 as CPI gave it another slap.
We’ve wiped feet at various support levels but GBPUSD has now posted lows of 1.5939 while EURGBP has climbed back up from 0.7925 to 0.7937.
USDCHF has been a steady eddy grinding higher as EURUSD falls with EURCHF pinned around 1.2075.
AUDUSD and NZDUSD have also dropped steadily through the session exacerbated by the general mood for JPY buying but eventually running into buyers, while USDCAD has ground its way through 1.1250 offers before also running out of steam.
It’s all looking a bit gloomy out there right now but the uncertainty is adding to opportunity.
