Forex news from the European morning session 21 November 2014
News:
- IFO’s Wohlrabe latest figures are an optimistic signal
- Increase in SNB Sight deposits points to intervention action ahead of 1.2000
- EU will delay decision on French budget deficit
- ECB’s Nowotny says EU investment package should provide short-term stimulus
- Nowotny: Q1 2015 would be too early to to consider additional measures
- ECB’s Nowotny says ECB should wait for measures to work
- Bank of Spain sees further signs of life in the Spanish economy
- Nowotny says exchange rates not a policy goal for ECB
- S&P says the risk of aggressive monetary stimulus in China remains low
- Goldman says it expects ECB to conduct sovereign QE in H1 2015
- Deutsche Bank push back the first BOE rate hike forecast to Aug 2015
- Barclays says stay short EURUSD this week
Data:
It’s been a cat and mouse kind of morning with each core pair having its moment but none with any real follow-through
EURUSD got a lift from the better than expected German IFO data and has wound its way back to 1.2414 having failed on an earlier attempt and dumped back to 1.2380 as USDJPY found some legs to rally up to 118.39 from 117.85. Yen pair purchases have kept both pairs underpinned since with EURJPY posting 146.83 after holding 146.00
GBPUSD found some sell interest to 1.5628 as EURGBP made its way up to 0.7935 only to be capped by offers to send it back down to 0.7906 as I type which has seen cable grind higher to 1.5694.
USDCAD has mostly had the morning off hemmed in by bids at 1.2225 and offers at 1.1250 while AUDUSD has had an offered feel all session following on from failures in Asia to hold above 0.8700 and has dropped to 0.8633.NZDUSD has had a similar but not so extensive a journey from 0.7895 to 0.7860.
The fall-out from Friday’s action still resonates and the jury remains divided.
