Forex news from the European morning session 4 November 2014
News:
- Japan’s Hamada says govt should delay sales tax rise until 2017
- Abe says BOJ easing was well timed
- Japan’s Mimura says yen has weakened too much
- Japan’s Chamber of Commerce says USDJPY between 95-105 is desirable
- Japan’s Amari keeping score for the next tax hike
- ECB’s Coeure they are “fully committed” to inflation goal
- France’s Sapin says ECB independence must be respected
- EU’s Katainen says Europe needs more engines of economic growth
- EU’s Moscovici says downside risks to EU growth still dominate
- Merkel says she sees continued stable domestic demand in Germany
- European Commission economic forecasts: Cuts forecasts across the board
- Spain’s de Guindos says jobless data shows economic improvement
- UAE’s oil minister says OPEC is concerned about the oil price fall but not panicking
- Cypriot fin min says recession on the island ” seems to have run its course”
Data:
- October 2014 UK Markit/CIPS construction PMI 61.4 vs 63.5 exp
- September 2014 eurozone PPI +0.2% vs 0.0% exp m/m
- Spanish jobless claims rise 79.2k in Oct
- Nikkei closes up + 2.73% at 16,862.47
Plenty of rhetoric and some good two-way interest on yen pairs but it’s been a session that’s really failed to ignite the senses with EURUSD also pinned down by large/huge option expiries later.
USDJPY had an early look at Asian lows of 113.38 from 113.53 only to rally back above 113.70 before falling back to 113.17 and then bouncing to 113.40 again. Yen pairs found a similar pattern as core pairs had little to offer the morning’s price action.
EURUSD has €5.9 bln of option expiries today at 1.2500 and the level has been protected from lows of 1.2504 to rally toward Asian highs of 1.2532 only to fall back to 1.2511 as I type. GBPUSD had a wobble to 1.5985 from 1.6000 on weaker construction PMI and it’s been on the back foot in quiet trading since with EURGBP holding gains above 0.7820.
USDCAD was a decent mover in this session having another surge higher to 1.1395 just shy of a barrier option at 1.1400 after earlier dips to 1.1340, while AUDUSD and NZDUSD have both looked fairly comfortable holding Asian gains.
US and Canadian trade balances coming up may impact and then we have US factory goods later. Seems like the market still needs direction.
