Forex news from the European morning session 15 December 2014
News:
- Bundesbank says ECB council unanimous in agreeing to use additional unconventional measures if needed
- Nobody on ECB council will approve QE without conditions says Nowotny
- Long term failure to hit price stability goal could justify QE says Nowtny
- Sydney cafe seige latest: Suspect reported to be known to NSW police
- Two Sydney cafe hostages contact Australia’s 9 News
- BC Partners buying PetSmart giving cause to the less than perky pound
- ECB’s Nowotny says risk of Eurozone collapse has been averted
- Germany’s Schaeuble sees 2015-2018 budget surplus at +0.5% of GDP
- Australia keeps its triple A says Moody’s – Outlook stable
- Greek fin min Harouvelis says Troika review to be completed by end-Jan 2015
- Spain’s De Guindos says he’s convinced the ECB will do everything necessary to boost inflation expectations
- Japanese firms agree to try to hike wages in draft agreement with Abe
- Another possible siege situation in Ghent, Belgium – Livesquawk
- Blackrock’s fare dodging fund manager banned by FCA
Data:
- December 2014 CBI industrial trends survey orders 5 vs 3 exp
- Swiss producer & import prices Nov mm -0.70% vs -0.2% exp
- Nikkei 225 closes down -1.57% at 17,099.40
With the world’s media attention focussed on a cafe in Sydney the fx markets have enjoyed a lively enough start to the week with the yen understandably in focus but it’s the pound that’s taken the headlines
GBPUSD had an early test of resistance/offers at 1.5750 but then drifted off to 1.5720 before plunging below 1.5700 on on a move later attributed to M&A ction before pausing at 1.5680 to wipe its feet before having a look below 1.5660. EURGBP had been down to 0.7906 from 0.7925 on cable’s initial rally but then turned around to test Asian highs/offers at 0.7938. Overall the pound had a wobbly morning but has since made a recovery against the weakening yen and aussie $
USDJPY started off around 118.65 after its Asian low/high of 117.77/119.06 and drifted off toward 118.35 as Europe opened before a more rapid fall to 118.14 only to find fresh buyers to recover to 118.91 as I type. Yen pairs have been on a similar journey in what has been the expected thin trading conditions.
EURUSD was caught in the early cross-play crossfire and was resilient around 1.2450 but it too had a wobble to 1.2415 before picking up some more cross buyers below 1.2420
AUDUSD has dribbled down all morning having capped above 0.8260 and we’re now at 0.8215 with talk of an option barrier at 0.8200 providing support. USDCAD has the opposite journey from 1.1560 to 1.1595 as I type on the USD demand but offers at 1.1600 looming. NZDUSD has drifted off to 0.7740 from 0.7770
Plenty of opportunity for the intra-day trader again as we begin FOMC week
