Forex news from the European morning session 5 November 2014
News:
- Japan’s Suga says sales tax decision will be taken after 8 Dec
- Central bank of Russia announces new measures to increase rouble flexibility
- Central Bank of Russia doesn’t exclude further rate increases
- EURCHF looking to test SNB resolve
- London Stock Exchange to launch a midday auction
- What the US dollar bears see now
Data:
- October 2014 UK Markit/CIPS services PMI 56.2 vs 58.5 exp
- Eurozone Markit services PMI Oct 52.3 vs 52.4 exp
- German Markit services PMI Oct 54.4 vs 54.8 exp
- Swiss CPI October mm 0.0% vs -0.1% exp
- September 2014 eurozone retail sales -1.3% vs -0.8% exp m/m
- French Markit services PMI Oct 48.3 vs 48.1 exp
- Italian Markit services PMI Oct 50.8 vs 49.4 exp
- Irish unemployment falls to 11.0% from 11.1%
- Spanish Markit services PMI Oct 55.9 vs 55.3 exp
- Nikkei closes up 0.44% at 16937.32
Busy, busy, busy where a combination of USD demand, yen selling and data has seen some significant moves this morning.
USDJPY saw some early demand as the Nikkei rose into the close and eventually we took out 114.50 offers from 114.10 dragging yen pairs with it and initially putting bids under the core pairs. But it wasn’t long before the USD demand became widespread and we saw GBPUSD fall from 1.6005 to test support around 1.5950, and EURUSD heading down to 1.2500 from 1.2550.
Cue weaker PMI data and we’ve since seen 1.5867 and 1.2466 with the USD demand also hitting the Aussie $ in a big way with AUDUSD tumbling to 0.8650 from 0.8740 then rushing through there to lows of so far of 0.8607.
EURCHF dipped early on to 1.2032 but has since steadied around 1.2040. No real chatter of SNB sniffing around but we can expect them to be keeping an eye on proceedings and USDCHF needed little pushing up to 0.9660 again from the 0.9585 lows as EURUSD tumbled.
USDCAD took out the 1.1450 barrier option to post 1.1468 only to fall back into 1.1440 where it’s found fresh support while NZDUSD fell to 0.7717 before picking up a few buyers.
Busy session then and we can expect more fun n games as the day progresses.
