Forex news from the European morning session 12 January 2015
News:
- Majority on ECB council in favour of sovereign bond purchases
- European Stability Mechanism head says ECB can’t be lender of last resort for Eurozone govts
- ECB’s coming QE needs political support says French finance minister
- No need for QE says IFO’s Sinn
- Italian government may ask ECB to buy EUR 50bln in bad bank loans
- Greek finance ministry says its financing needs in March are acute
- Germany heads south in latest OECD economic leading indicator
- Bank of France estimates French Q4 2014 GDP growth at +0.1%
- Cameron warns the UK electorate about leaving a “legacy of debt”
- Cable downward pressure increased by M&A activity
- EU is not threatening Russia with additional sanctions
- Morgan Stanley now expects ECB sovereign QE
- ForexLive’s Clash of the Titans
Data:
After the Asian interest to sell a few $ we’ve seen the greenback dust itself off and head higher again while the pound came under early pressure particularly on M&A selling (see above) before finding support
USDJPY started looking perky below 118.70 and has been up to test resistance/offers at 119.25-30 with USDCHF also perky upto 1.0188 as EURUSD wound its way down from 1.1871 highs to 1.1788 so far
GBPUSD had an early knock on the Shire news moving down from 1.5175 to 1.5098, just off the post-NFP lows, before rallying again to test 1.5150 as EURGBP chewed its way through bids around 0.7800 to post 0.7788 so far
USDCAD has found support, reluctantly it seems still, from the general USD+ tone and falling oil prices to post 1.1889 from 1.1840 while AUDUSD and NZDUSD have both needed little encouragement to give up Asian gains to 0.8255 and 0.7865 to come all the way back down to look at support at 0.8150 and 0.7750 respectively
All in all a decent start to the week with good opportunity which should continue for the rest of the day with the ECB, Greece and US interest rate rises all still in the mix as the global uncertainty continues
