Forex news from the European morning session 25 Nov 2014
News:
- Kuroda says fx stability is not the role of the BOJ
- Japan’s LDP party will continue with “bold monetary easing”
- ECB’s Noyer says they are prepared to do more if there are threats to goals and outlooks
- RBA’s Lowe says lower AUD is helpful and sees a further drop over time
- Lowe says the RBA can still lower interest rates if they need to
- Carney sees substantial uncertainty about the estimate for slack in the economy
- Carney says MPC has considerable flexbility to provide extra stimulus if necessary
- Carney says he expects UK recovery to continue but remains an economy that requires stimulus
- BOE’s Forbes says full capacity could be reached before forecast
- BOE’s McCafferty says their research finds that consumers are not necessarily more sensitive to rate hikes than in previous cycles
- BOE starting to see wage data turn up says Carney
- More from Carney: Japan and Eurozone economies have weakened but US is different
- Bundesbank says low interest rates spur risky investor behaviour
- OECD says Fed should raise rates in H2 2015
- ECB may have to raise deposit rate before large scale QE – HSBC
- Japan’s GPIF Q3 earnings JPY +3.6 trln, a +2.9% return
Data:
- German Q3 GDP final qq SA +0.1% vs +0.1% exp/prev
- October UK mortgage lending hits the lowest since January 2014
- Spanish PPI Oct mm -0.5% vs +0.5% prev
- French business confidence Nov 94 vs 92 exp
- Nikkei closes up 0.29% at 17,407.62
It’s been a mixed bag of a morning with some consoliation in most pairs but one that’s seen further falls in the Aussie $ given a helping hand by more bearish comments from the RBA.
Overall the euro has looked ok without setting the world alight and EURUSD has traded mostly in the higher end of a 1.2416-45 range with demand in the dips on EURGBP and EURJPY to post highs of 0.7938 and 146.85 from 0.7920 and 146.30
USDJPY shied away from 118.00 gains initially after the sharp Asian fall to 117.70 but has since recovered some poise to post 118.15 although in retreat again at the moment
The pound has gone around in circles with GBPUSD dipping to 1.5650 support before rallying to 1.5691 only to fall back but Carney & Co said little in their testimony to cause any impact. Overall though there is defintitely a back-foot feel still with EURGBP still challenging recent highs and cable dipping again as I type to 1.5667
But the beleagured Aussie $ is definitely one for the whipping boys again and this morning’s comments from RBA dep gov Lowe didn’t help, causing another push down from 0.8560 to 0.8523 and 4-year lows. AUD pairs have all showed varying degrees of weakness .
NZDUSD has continued its own journey south to 0.7781 and USDCAD has given up on a rally to 1.1320 to post lows of 1.1268 so far
All a bit scrappy then but still opportunity as always if you’re in for the shorter haul.
