Forex news from the European morning session 23 January 2015
News:
- ECB’s Nowotny says risks from QE not “insignificant”
- Bank of Italy’s Visco says ECB QE uses “legitimate monetary policy tools”
- ECB’s Visco says he’s not worried about ECB balance sheet
- ECB’s Coeure says market reaction shows QE programme is credible
- ECB’s Coeure says exchange rate is a transmission channel for QE
- ECB easing doesn’t remove need for reform says Hollande
- BOE’s Carney says he welcomes ECB QE
- IMF’s Lagarde expresses reservations over ECB QE
- Germany files legal objection to ECB QE with German constitutional court
- EU’S Moscovici says there’s no risk and no will to see Grexit
- Kuroda: Central bankers are “trying our best”
- BOJ’s Kuroda says oil price falls will lead to lower Japanese inflation over the next few months
- Kuroda: ECB action does not make BOJ’s job more difficult
- PBOC’s Pan says ECB QE puts additional depreciation pressure on yuan versus USD
- IEA’s Birol doesn’t see Saudi oil policy changing after the death of King Abdullah
- Goldman’s lower metals price forecasts for 2015
- Hutchison Whampoa looking to buy UK’s O2 mobile phone operator
- Oanda enters the race to buy Alpari UK
Data:
- December 2014 UK retail sales +0.4% vs -0.6% exp m/m
- Eurozone Markit mftg PMI flash 51.0 as exp
- German Market mftg PMI flash Jan 51.0 vs 51.7 exp
- French Markit mftg PMI 49.5 vs 48.0 exp
- French business confidence Jan 94 vs 95 exp
- Nikkei closes up +1.05% at 17,511.75
It’a been all about the euro again as the ECB fallout and Grexit fears continue to weigh heavily amidst a truckload of rhetoric
EUR pairs have all tumbled to a lesser or greater degree dragging core pairs down with them led by EURUSD from 1.1340 to 1.1114 hardly stopping to wipe its feet along the way. EURGBP needed little encouragement to follow after an early hunt on 0.7550 saw a rebound to 0.7583 only to tumble all the way back and gathering momentum to 0.7500 then 0.7450 then 0.7428 lows so far
EURJPY didn’t need a lot of asking either after USDJPY failed at 118.85 again and we’ve seen both pairs fall with 117.80 and 130.91 lows posted so far. Other euro pairs have suffered a similar fate but Swiss corp demand has helped provide some support on EURCHF into 0.9780 from 0.9900
Overall the pound has held up well with GBPUSD anchored around 1.4975 with good demand from EURGBP sales spilling into other GBP pairs too
Elsewhere USDCHF has enjoyed the ride upto 0.8797 but failed ahead of decent resistance/offers at 0.8800 and has fallen back to 0.8755, while USDCAD has just kept on motoring higher posting 1.2440 highs so far
AUDUSD and NZDUSD have both been sliding too to take out decent support both at 0.7950 and 0.7900 with 0.7430 providing some small degree of demand for the moment
A busy session that has set the precedent for many more to come. Whether it’s quite so one-way remains to be seen but the euro is definitely getting it with both barrels right now
