Forex news from the European morning session 7 January 2015
News:
- Hollande calls shooting a terrorist attack as France raise their terror alert
- Merkel adviser warns ECB about buying bonds before Greek elections
- PM Abe says he may be able to declare that Japan’s out of deflation if companies raise wages
- Latest poll has major parties neck and neck in UK election race
- Japan’s MOF rumoured to be planning JPY 37trln of new JGBs for FY2015
- Germany’s Fuchs says Greece is no longer systemically relevant for stability
- Greece is an example for all others says Fuchs
- German finance ministry says Eurozone inflation figures do not change govt view on risk of deflation
- USDCAD pops 1.1850 barrier option. Brent falls below $50
- German spokesman Seibert says government web servers have been attacked
- Welcome to deflation Europe
- BOE Minutes from 2007-2009 crisis show that King & Co less than impressed with Brown & Co’s attempts to steady the ship
- Oh to be a fly on the wall at ECB HQ
- When David meets Angela in London today
Data:
- December 2014 eurozone HICP flash -0.2% vs -0.1% exp y/y
- December 2014 eurozone unemployment rate 11.5% vs 11.5% expected
- SNB foreign currency reserves Dec CHF 495.1bln vs CHF 472.0bln exp
- German unemployment change adj Dec -27k vs -5k exp
- German Markit construction PMI Dec 50.5 vs 53.5 prev
- US MBA mortgage market index 329.9 vs 363.1 prior
- German retail sales Nov mm +1.0% vs +0.2% exp
- December 2014 Italian HICP flash -0.1% vs +0.3% prior y/y
- Italian unemployment rate adj Nov 13.4% vs 13.3 prev
- December 2014 UK Lloyds business barometer rises to 45
- Nikkei 225 closes up +0.01% at 16,885.33
First off, our thoughts go out to family and friends of all the victims of this morning’s shooting in Paris
Market wise there’s been plenty going in the session and we’ve seen further declines for the euro, amongst others, as the greenback continues to find buyers
EURUSD has slid to fresh 9 year lows of 1.1819 after an early attempt on 1.1900 with EURGBP falling to 0.7814 from 0.7845 and EURJPY down to 140.55 from 141.60. GBPUSD didn’t need much encouragement to follow lower to 1.5108 but found a few buyers on the EURGBP selling but rallies have been capped above 1.5140 so far
USDJPY kicked its heels around 119.00 for a while before climbing to fresh o/n highs of 119.26 only to drift lower again while USDCHF has mirrored EURUSD to 1.0162 as EURCHF remains anchored around 1.2008
USDCAD finally took out the 1.1850 barrier option to post 1.1869 as oil got slapped earlier but a rally in the black stuff gave CAD buyers a cue to get back on board down to 1.1820
AUDUSD and NZDUSD have both been in tight cross-play crossfire around 0.8070 and 0.7750 after their falls from yesterday’s rallies
The FOMC Minutes loom large but there’s plenty going on before that with some excellent opportunity
