Forex news from the European morning session 23 October 2014
News:
- BOE will raise rates when headwinds dissipate – Bank of England’s Broadbent
- BOE’s Broadbent says it would be more powerful if the ECB bought private debt than German government bonds
- ECB’s Mersch says Eurozone not out of danger
- BUBA’s Weidmann says there is a consensus in ECB that deflation risk is low
- ECB’s Hansson says outlook for global economy slightly improved
- EU Commission says ” nothing has been concluded” on Italian budget assessment
- And Italy’s punishment for missing 2015 EU budget targets? A polite letter!
- New Japanese industry minister on the spot after staffer blew ‘company’ money in a bondage bar
- Bank of Spain sees Q3 GDP growth of +0.5% vs +0.6% in Q2 qq
- Van Rompuy says unemployment remains “unacceptably high”
- Bank of England details 48 hour bank failure plan
- Tesco reports that pre-tax profit for H1 fell 91.9% yy
Data:
- September 2014 UK retail sales -0.3% vs -0.1% exp m/m
- Eurozone Markit mftg PMI flash Oct 50.7 vs 49.9 exp
- German Markit mftg PMI flash Oct 51.8 vs 49.5 exp
- French Markit mftg PMI flash Oct 47.3 vs 48.5 exp
- October 2014 UK CBI industrial trends orders -6 vs -4 exp
- French business confidence Oct 91 vs 91exp
- Irish PPI Sept MM -1.2% vs +0.3% prev
- Nikkei closes down -0.37% at 15,138.96
Despite a weaker French PMI reading traders have been quite happy to buy euros this morning across the board as German and Eurozone releases breathed some much needed life into the beleagured multi currency.
After falling from 1.2635 to 1.2613 on the French data we’ve since been back up to 1.2677 fuelled by stop-loss buying triggered on EURJPY and EURGBP with those pairs rallying from 135.60 to 136.29 and 0.7875 to 0.7918 respectively.
The pound came under another attack on weaker retail sales and lending data which saw GBPUSD fall to 1.5995 from 1.6025 having opened at 1.6040 adding fuel to the EURGBP surge but we’ve since rallied to 1.6025
USDJPY had a sharp move higher from 107.25 to 107.64 on weaker Nikkei futures and stop-loss yen selling while USDCHF dropped to support at 0.9520 from 0.9555 as EURUSD climbed higher and EURCHF remained anchored to the ocean floor.
USDCAD has mostly behaved itself in a 1.1230-60 range and AUDUSD still can’t get over 0.8800 and NZDUSD remains on the back foot
Good opportunity so far and let’s hope it continues
