Forex news from the European trading session - 31 January 2018
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News:
- German economy shows no signs of overheating
- More from Zypries: Germany has factored euro rally into GDP growth forecast
- ECB's Coeure: QE will not last forever
- ECB's Coeure sees no reason to believe that future inflation risks have moved permanently lower
- BOJ's Iwata: JPY rising more than we expected
- More from BOJ's Iwata: Next BOJ leadership ought to maintain current policy framework
- BOJ's Iwata: I'm confident that I won't be reappointed
- FX option expiries for the 15.00 GMT cut - 31 Jan 2018
- Strike by German workers may put a small dent in the ECB's plans
- Cable on course for the best monthly performance since July 2010
- EU officials reject London's plan to strike a deal on financial services - Reuters
- EURGBP finding month-end demand again
- BOJ says it plans to keep current pace of bond buying in February
- BOJ's Kuroda: Still a long way to go to achieve 2% price target
- SNB USD holdings remain steady at 35% of reserves in Q4
- More responses to the Australian Q4 CPI data earlier
- China premier Li: Hopes US will view ties with China positively
- China premier Li: China and Britain are committed to upholding free trade
- Chinese yuan strengthens past 6.30 against the US dollar
- Oman oil minister says he's comfortable with oil at $70 per barrel - report
- Trading ideas for the European session
- Nikkei 225 closes lower by 0.83% at 23,098.29
- ForexLive Asia FX news: Bitcoin drops more. Also, Aussie CPI
Cryptocurrencies:
- Bitcoin continues to pivot around the $10,000 level
- South Korea's Kim: Cryptocurrency speculation in the country is overheated
- Coincheck said to have falsely explained its security systems to customers - report
- Japan's messaging app Line to launch its own cryptocurrency exchange
Data:
- Eurozone Jan core CPI yy flash 1.0 % vs 1.0% exp
- Eurozone Dec unemployment rate 8.7% as exp/prev
- Germany Jan unemployment change -25k vs -17k expected
- Germany December retail sales m/m -1.9% vs -0.4% expected
- France January preliminary CPI m/m -0.1% vs -0.3% expected
- Italy December unemployment rate 10.8% vs 10.9% expected
- Spain January flash CPI m/m -1.1% vs +0.5% prior
- Switzerland CS ZEW Jan expectations survey 34.5 vs 52.0 prev
- Switzerland December UBS consumption indicator 1.69 vs 1.67 prior
- Japan January consumer confidence index 44.7 vs 44.9 expected
- Japan December housing starts y/y -2.1% vs +1.0% expected
It's month-end and we're seeing some impact in flows with large EURUSD option expiries also casting their shadow. Not to mention the FOMC decision at 19.00 GMT
EURUSD has large option expiry interest at 1.2400, 1.2450 and 1.2450 and it's no surprise to see the pair pivoting around the middle of that one. EURGBP though staged a decent rally from 0.8775 to 0.8816 after holding 0.8760 in Asia with month-end demand in the frame.
That move higher helped push GBPUSD down through 1.4150 and post 1.4121 after 1.4214 Asian highs. Part-corrections noted in both since.
USDJPY failed above 109.00 again with large option interest up there today as well and has since posted 108.60 USDCHF survived another look at 0.9300-10 and has bounced to 0.9340 with EURCHF up to 1.1625 from 1.1585.
USDCAD fell from 1.2340 to test 1.2280 and has remained down there since while AUDUSD has chewed its way back to post 0.8115 from the CPI-led lows of 0.8047 in Asia
Bitcoin has also rebounded back through $10000 after early losses.
US ADP jobs data your next data risk at 13.15 GMT then more to come as we wait on FOMC
