Forex news from the European morning session 27 October 2014
News:
- ECB’s Noyer says bank stress tests would be hard to repeat regularly
- EBF’s Mijs says the bank stress tests were very comprehensive
- BUBA’s Dombret says its unrealistic to expect an immediate rise in bank lending after stress tests
- IFO’s Wohlrabe says there are almost no bright spots in German economy right now
- Germany’s DIHK Chambers of Commerce slashes 2015 GDP forecast to +0.8%
- Euro area economy relatively stable says Schaeuble
- Italy says 4th year of recession is to be avoided at all costs
- BOJ may look to moderate inflation outlook after fall in oil
- New ebola scares hit New York and Japan
- Poroshenko looks to put together a coalition after Ukraine election results
- Does the fall in Chinese forex reserves signal anything more sinister?
- Central bank of Russia raises rouble corridor by 35 kopecks
Data:
- German IFO business climate Oct 103.2 vs 104.50 exp
- Eurozone M3 money supply yy Sept +2.5% vs +2.2% exp
- UK CBI distributive trades survey Oct 31 vs 25 exp
- Nikkei closes up +0.63% at 15,388.72
So with markets in bank stress test hyper-mode we had a justifiably cautious start to the week with large EURUSD option expiries also casting a shadow.
EURUSD opened up around 1.2705, had a little wobble to 1.2685 after weaker IFO but then had another slap to 1.2670 before staging a rally of sorts to 1.2682 as I type. EUR pairs have suffered a similar back foot experience with EURGBP posting 0.7862 and EURJPY 136.58 before finding a few buyers
GBPUSD has looked well supported for the most part boosted by the EURGBP selling but we’ve not been able to get through the offers at 1.6125-30 and have retreated meekly back around 1.6100 while USDJPY failed to also hold gains above 108.00 and drifted back below 107.80 with yen pairs also in softer mode
USDCHF has also looked a little offfered on the rally but finding bids in the dips with EURCHF hovering above SNB-sniffing levels around 1.2050, while USDCAD has mostly had the morning off after failing to chew through bids into 1.1200.
AUDUSD had a steady rally from 0.8790 but baulked at heading past 0.8820 and found itself drifting back to 0.8795 as I type while NZDUSD still finds itself somewhat tied down between 0.7850-0.7900
A mixed start to the week then but we’ve got plenty to look forward to as the days unfold.
