Forex news from the European morning session 6 November 2014
News:
- Bank of England leaves interest rates unchanged in November
- SNB head Jordan – Yes vote on gold initiative would make it harder to defend cap
- SNB’s Jordan says accepting the gold initiative “would be an invitation to the market to speculate against the central bank”
- ECB governing council did not confront Draghi at council dinner
- EU’s Hill says European banks are stronger from new regulatory framework
- Krugman tells Abe that raising sales tax again now is dangerous
- OECD sees global growth at 3.3% in 2014 and 3.7% in 2015
- PBOC says Q3 economy within reasonable range
Data:
- September 2014 UK industrial production 0.6% vs 0.4% exp m/m
- UK Halifax house price index Oct mm -0.4% vs +0.4% exp
- German factory orders Sept mm +0.8% vs +2.3% exp
- Eurozone Markit retail PMI Oct 47.0 vs 44.8 prev
- Swiss consumer confidence Oct -11 vs -5 exp
- Japanese leading index Sept 105.6 vs 105.5 exp
- Nikkei closes down -0.86% at 16,792.48
Apols for delay.. Gremlins at work.. and some.
Will keep this summary brief out of necessity but it’s been a lively session that has seen yen pairs recover from a sharp Nikkei-led drop in Asia and both euro and pound on opposite paths
USDJPY fell to lows early on of 114.07 from Asian highs of 115.52 but was soon edging its way back up past 114.30 then 114.60 with yen pairs generally following suit
GBPUSD has looked offered all morning from 1.6000 and didn’t need much encouragement to drift lower on weaker data finally taking out 1.5950 support to post 1.5932 with EURGBP buying through 0.7850 accelerating the move.
The euro has enjoyed decent session overall after early wobbles and we’ve seen gains across the board as markets discount/vote against further ECB action later. EURUSD has posted 1.2534 from 1.2498 and EURJPY 143.60 from 143.05 with EURGBP posting 0.7858 from 0.7825.
AUDUSD and NZDUSD have both seen good rallies capped in this session while USDCAD has been back in its hutch again
Draghi & Co awaited to inject the next dose of volatility.
