Forex news from the European morning session 30 October 2014
News:
- Japan’s Abe says he is not thinking of calling a snap election
- Japan’s Abe says growth back on track and economic confidence will be key factors in sales tax decision
- EBA’s Enria says the bank stress tests weren’t foolproof
- BOJ’s Kuroda says capex is gradually increasing
- BOE’s Cunliffe says interest rates will only rise gradually
- Talk of Ukraine/Russia deal on Crimea helps rally the rouble
- Putin’s spokesman says they have no idea who the diplomat is who talked of a deal on Crimea
- EU Commission says a gas deal with Ukraine and Russia is “very close”
- Yatseniuk says Ukraine ready to pay off debts for previously supplied gas
- Will there be a buyer of 1700 tons of gold after November?
- Central bank of Russia raises rouble corridor by another 40 kopecks
Data:
- German regional CPI lower than expected
- North Rhine Westphalia CPI Oct mm -0.2% vs 0.0%
- German unemployment change Oct -22k vs +4k exp
- UK Nationwide HPI Oct mm +0.5% vs +0.3% exp
- Eurozone economic confidence Oct 100.7 vs 99.7 exp
- Spanish Q3 GDP provisional qq +0.5% as exp
- Swiss KOF leading indicator Oct 99.8 vs 99.2 exp
- Swiss UBS consumption indicator Sept 1.41 vs 1.28 prev
- Nikkei closes up +0.67% at 15,658.20
Well, I guess it was to only be expected given the sharp moves post-FOMC and we’ve seen some USD selling this morning as key levels held in early moves and traders chose to either profit take/bargain hunt or both.
GBPUSD opened up on the back foot after BOE Cuniliffe added to the rate hike delay discussions but 1.5950 bids loomed large enough for a halt at 1.5960 to then rally and test the offers into 1.6000-10. EURUSD also looked very wobbly early on but good demand into 1.2550 again holding and we turned to test 1.2600 before reteteating.
And the message has been the same across the board with USDJPY falling from 109.30 to 108.97 before finding fresh demand and USDCHF headed down to 0.9570 from 0.9608 before similarly getting support.
USDCAD had a look at 1.1200 but has generally been in quiet mode while AUDUSD has had a good rally from support at 0.8750 ahead of AUD2.5bln of option expiries at 0.8745 today. Offers into 0.8800-10 though have capped the post-FOMC rallies again.
US Q3 GDP and initial jobless claims on their way at the bottom of the hour.
