Forex news from the European morning session 12 November 2014
News:
- More from Kuroda: BOJ still capable of steering flexible monetary policy
- Kuroda says BOJ is carefully monitoring bond market
- UK FCA and CFTC announce fines for UBS, HSBC, JPMorgan,Citi, and RBS after Forex investigations
- BOE says there is no evidence that any of its staff was involved in unlawful behaviour
- BOE says its chief FX dealer was dismissed yesterday for serious misconduct relating to internal policies
- BOJ’s Miyao says govt and parliament will decide on sales tax hike
- BOE November Inflation Report: cuts 2014 CPI forecast to 1.2% vs 1.9% prev
- The squeeze on wages is not over but there are encouraging signs says Carney
- I know how to raise interest rates says Carney
- Spectre of stagnation haunting Europe says Carney
- Carney: Not seeing confidence effects on investment from Eurozone stagnation
- Carney on Draghi: ECB action may not have immediate impact on Eurozone
- Japan’s Aso says BOJ easing not aimed at FX rates
- Plosser says Fed should begin raising interest rates in near future
- SNB says Swiss outlook still uncertain
- German economic ministry sees no significant increase in Q4 GDP
- German council of economic advisers cuts 2014 GDP forecast to +1.2%
- OECD Sept monthly indicators point to weaker Eurozone growth
- Spanish PM Rajoy says Catalans can not hold a legal referendum
Data:
- October 2014 UK labour market report claimant count -20.4k vs -22.0k exp
- September 2014 eurozone industrial production 0.6% vs 0.7% exp m/m
- German wholesale prices Oct mm -0.6% vs +0.1% prev
- US MBA mortgage market index 372.9 vs 376.1 prior
- Nikkei closes up +0.43% at 17,197.05
A very lively session that has seen JPY, EUR and GBP all in the highlights and headlights but it’s the pound that’s come out of it the worst
USDJPY fell through 115.50 in early trading as the Nikkei lost some gains and we saw 115.09 before rallying above 115.40 but so far unable to get back through 115.50. Yen pairs took a similar route with EURJPY also under presure from a large EURGBP sell order that saw the pairs down to 143.34 and 0.7802 from 144.60 and 0.7845
Cue a disappointing UK jobs report albeit with slightly better wages data and we saw EURGBP surge up through 0.7850 then through recent highs at 0.7865 to trigger stops to 0.7880. GBPUSD had been supported by the earlier EURGBP selling but found itself on the back foot from a post-data rally 1.5930 as Carney delivered the latest BOE inflation report and the markets were once in sell mode bringing GBPUSD down to 1.5812 so far
USDCAD has also been on the back foot down to support at 1.1300-10, while AUDUSD has found a few buyers to 0.8727 before capping ahead of decent offers and NZDUSD similarly had a good move up to 0.7879 before retreating.
Lots going on again and we know wait to see what North American markets bring upon their return.
