Forex news from the European morning trading session 1 December 2014
News:
- Moodys cuts Japan sovereign rating to A1 from AA3
- Moody ‘s says BOJ QQE is credit positive for Japan
- Japan’s Abe says BOJ will do its utmost to meet inflation target
- Political worries sees HSBC and Morgan Stanley slash GBP/USD forecasts
- Morgan Stanley pushes back its BOE rate hike forecast to Q4 2015
- So what exactly did we learn from the Swiss gold referendum?
- Well that Swiss gold thing was a big disappointment
- Option expiries 10am NY cut 1 Dec
Data:
- Eurozone Markit mftg PMI final Nov 50.1 vs 50.4 flash
- November 2014 UK Markit/CIPS manufacturing PMI 53.5 vs 53.0 exp
- German Markit mftg Nov final 49.5 vs 50.0 flash
- French Markit mftg PMI final Nov 48.4 vs 47.6 exp
- Spanish Markit mftg PMI Nov 54.7 vs 52.6 prev
- October 2014 UK BOE consumer credit 1.087bn vs 0.900bn exp
- Swiss Nov PMI 52.1 vs 55.3 prev
- Irish Markit mftg PMI Nov 56.2 vs 56.6 prev
- Nikkei 225 closes up +0.75% at 17,590.10
There we were wondering what was going to tickle our fancy on a Monday morning in the wake of the Swiss referendum being done n dusted when Moodys came along and downgraded Japanese govt debt to A1 from AA3
Yen pairs immediately spike north with USDJPY posting 119.15 from 118.80 and EURJPY touching 148.17 before Nikkei futures took a tumble on the knock-on effect of a ratings cut to equities and bonds and it wasn’t long before we were down at 118.-07 and 147.08 before finding some buyers once again
Amidst all this the euro was also on the back foot as weaker PMI data tipped euro pairs lower with EURUSD posting 1.2435 from 1.2470 only to head higher again as yen pairs drove north once more
EURGBP was a prime mover from 0.7975 down to 0.7927 as UK PMI data impressed and the move sent cable up to test Friday’s highs at 1.5726 having earlier been down to 1.5618, pushing through eventually to 1.5733 only to fall back to 1.5698 as I type
EURCHF opened at 1.2033 after the early Asian spike into 1.2050 and we dribbled down to 1.2022 before picking up some fresh buyers while USDCHF has been caught in yen and euro cross fire and got sold to 0.9640 from 0.9680. USDCAD has also been knocked back on the USD-neg sentiment and we’re now seeing session lows at 1.1392 from 1.1460
AUDNZD had a look at the key 1.0800 support but both core pairs have since rallied with AUDUSD pushing into 0.8500 from 0.8435 and NZDUSD ATO 0.7870 from 0.7810
Welcome back to our US cousins.Hopefully you had a great Thanksgiving and all raring to pick up the baton on what’s been an unexpectedly lively start to the week
