Forex news from the European morning session 7 November 2014
News:
- Carney says risk of volatility will not affect timing of interest rate normalisation
- BOE’s Carney says bankers aren’t complacent on need for reform
- Japan’s Abe repeats he will not be calling a snap election
- Japan’s Amari says they can’t give a level of growth that would allow a sales tax hike
- BOJ’s Kuroda says they are making the best effort to reach target at earliest time
- ECB’s Noyer says central bank buying of govt bonds may be right in case of avoiding deflation risks
- France’s Sapin says that UK and others have until Sept 2015 to pay EU budget surcharges
- Russian rouble under more pressure as USDRUB posts record highs
- SNB fx reserves Oct CHF 460.4bln vs 462.2bln prev
- The Bank of France international symposium is under way
- Soros says the euro area is moving towards deflation
Data:
- UK visible trade balance Sept GBP -9.821 bln vs -9.4bln exp
- German trade balance Sept +EUR 21.9bln vs +19.0 bln exp
- French industrial production Sept 0.0% vs -0.2% exp
- Swiss unemployment rate Oct 3.1% vs 3.1% exp
- Swiss retail sales Sept yy +0.3% vs +1.9% prev
- Nikkei closes up +0.52% at 16,880.38
- Bank of France business sentiment index Oct 96 as exp
It’s been an indifferent session as we wait on NFPs, with some decent opportunity for the intra-day traders as long as they’ve not got greedy as follow-through has been limited.
USDJPY topped out again into 115.50 to drift back to 115.15 only to pick up some more bids to rally to 115.33 as I type with yen pairs largely behaving in similar fashion
GBPUSD had an offered feel to it again and didn’t need much encouragment to retreat from a failure to breach 1.5850 and test 1.5800 only to bounce again to 1.5833 before dipping again while EURUSD eventually posted above 1.2400 only to similarly retreat back to its comfort zone for the morning around 1.2390. Large options rolling off again today.
USDCHF has mirrored EURUSD again with EURCHF pinned to 1.2040 while USDCAD has largely been meandering around 1.1430-40. AUDUSD and NZDUSD have both chewed higher to 0.8605 and 0.7705 respectively before finding the air a bit thin.
Bring on the NFPs and some more volatility!
