Forex news from the European morning trading session 22 October 2014

News:

Data:

The eagerly awaited MPC Minutes didn’t disappoint or surprise the doves amongst us and the market had already started to factor in some doom n gloom ahead of the release before giving the pound another kick afterwards.

GBPUSD opened the session at 1.6122 with EURGBP at 0.7893 before starting a slide attributed largely to rumours that McCafferty had not voted for a hike this time ( untrue as it turned out). We posted 1.6085 before blasting through and then finally to 1.6010 after the release following a failure to climb back over 1.6050 on the initial bounce.

EURGBP rose to test the offers into 0.7930 before falling back as cable started its climb higher again to 1.6061 as I type. GBPJPY fell to 171.06 but now rallied to 171.70. Plenty of opportunities for both bears and bulls.

USDPY had an early look above 107.00 as the Nikkei rallied but soon faded back as yen pairs found themselves on the back foot again with EURJPY falling to 135.50 before running into more bids and USDJPY finding support on its Asian lows around 106.80.

EURUSD took its own tumble to 1.2680 from 1.2720 as the US $ found a better wanted tone but the euro was undermined by more concerns emanating from bank stress tests and the like. USDCHF needed no second invitation to head up through 0.9500 from being stuck around 0.9480 but then capped at 0.9514 and now in retreat again at 0.9487.

AUDUSD and NZDUSD both found themselves under early pressure only to regain some poise to 0.8804 and 0.7980 while USDCAD had a look at 1.1214 before a move up to 1.1240 only to fall back.

Definitely a session of opportunity now needing the next shove with US CPI looming at 12.30 GMT.