Forex news and trading headlines for the European session 14 November 2014
- Q3 2014 French GDP flash 0.3% vs 0.2% exp q/q
- Q3 2014 French non-farm payrolls -0.2% vs 0.1% prior q/q
- Q3 2014 German GDP flash 0.1% vs 0.1% exp q/q
- Q3 2014 Italian GDP flash -0.1% vs -0.1% exp q/q
- September 2014 UK construction output 1.8% vs 4.0% exp m/m
- Q3 2014 eurozone GDP flash 0.2% vs 0.1% exp q/q
- October 2014 Eurozone HICP final 0.4% vs 0.4% exp y/y
- Q3 2014 Greece GDP flash 1.7% vs 0.7% exp y/y
- New loans in China fall in October
- ECB’s Noyer gives the thumbs up to QE
- IMF says Japan needs to raise sales tax to 10% in Oct 2015
- Mizuho’s Sato says yen weaker than 125 will have more negatives than positives
- IEA says pressure is rising on OPEC to reduce production
- Putin gives the finger to the US dollar
- Abe mave announce dissolution of Diet by Nov 18th – Livesquawk
- Large EUR/CHF bids keeping the wolves from the SNB’s doors
- If sales tax is delayed government would work on getting wages to rise faster – Amari
- EU says GDP figures are a small piece of good news
- Forex option expiries for the 10am (15.00 gmt) New York cut 14 November 2014
GBP traders were up early today to continue where they left off last night. GBP/USD was under 1.5700 by around 15 pips when I sat down and it wasn’t long before it got pushed down to a low of 1.5654 on dollar strength across the board.. Strong bids and a lift in the euro helped pull it back up towards 1.57 but we fell a few pips short as strong orders saw off that move. As the dollar took over once again we slid to a new low at 1.5647 taking out a barrier at 1.5650 but not running any stops thereabouts. It all still looks very heavy even after the moves this week.
EUR/USD tried really hard to bust a move higher as France GDP came in better than expected. It was still rubbish but slightly better rubbish than previously. Germany also came in over expectations and another try at moving higher failed on the dollar strength in play. Finally it showed some gumption as USD/JPY hit some resistance up towards 116.50 and we managed to reach 1.2471 before the air came out of that balloon and we drifted back to the current 1.2440
USD/JPY just doesn’t care these days. If there is any risk from Abe dissolving the Diet it’s being ignored. The strength in the buck is becoming obscene but who are we to argue with it. A barrier, heavy orders at 116.50, and upcoming retail sales have put a lid on things for now but even a poor number form the US is unlikely to take much wind from the sails of this rally, you never know though. EUR/JPY also coming up against a tough level at 145 is helping to contain the topside for both USD and EUR.
EUR/CHF keeps sagging and rumours of official bids lurking at 1.2015 are circulating. It’s looking more and more like we’ll be putting the SNB to the test soon but we shouldn’t expect fireworks from them until at least the gold referendum is finished with.
