Forex news from the European morning session 10 November 2014
News:
- Putin says Russia will not introduce capital controls
- Russian central bank gov Nabiullina cancels rouble corridor and says fx intervention still taking place to support rouble
- BOE’s Carney says TLAC is a major step to end ” too-big-to-fail”
- Kuwait oil minister says oil price could still fall below current level
- “Don’t panic about oil prices” says OPEC’s Badri
- Cameron says EU referendum will not harm UK economy
- EURCHF drops to lowest level since Sept 2012
- Obama sees “momentum building” toward agreement on TPP talks
- Trans-Pacific Partnership: Leaders are engaging to complete “ambitious and balanced” packages to open markets
Data:
- Italian industrial output Sept mm -0.9% vs -0.2% exp
- November 2014 eurozone sentix index -11.9 vs -13.5 exp
- Don’t be looking to Greece for any inflation as HICP falls 1.8% y/y in October
- October 2014 UK Lloyds employment confidence index 0 vs 10 prior
- Nikkei closes at -0.59% at 16,780.53
After the USD selling spree on Friday it’s a been a far more sedate affair in Asia and Europe as the jury remains out on whether the move signals steeper declines or just a momentary correction.
USDJPY had an early wobble down to 113.86 from 114.10 but has since recovered its poise to trade above 114.20 again after 114.62 Asian highs were put in retreat by a falling Nikkei. Yen pairs have seen a similar journey.
GBPUSD had a look below 1.5890 after opening at 1.5910 but has spent most of the session pinned around 1.5900 while EURUSD found buyers to 1.2509 after finding decent support at 1.2470 only to find fresh sell interest to retreat to 1.2482 as I type. Large option expiries again today. EURGBP had an early look at the 0.7860-65 resistance/offers but has since fallen back to 0.7850.
EURCHF though has been more of a talking point as the pair has drifted to lows of 1.2021 not seen since 2012 before edging back up to 1.2030 amid the usual conjecture over potential SNB intervention. USDCHF has traded in similar mode also with a large option expiry at 0.9650 today.
USDCAD has drifted off from 1.1335 to take out some bids at 1.1300 but with little follow through so far, while AUDUSD has been in tight 0.8660-80 range mode and NZDUSD has found a few sellers from 0.7820 down to the 0.7785 support area
Only Canadian housing the data of any note coming up so we wait to see if North American desks can show any lead.
