Forex news for the European morning trading session 25 Sept 2017
News:
- Japan's Abe to dissolve parliament on 28 Sept
- Japan's Abe to dissolve parliament's lower house on 28 Sept says Kyodo
- Japan's Abe says he will seek a JPY 2trln economic package
- IFO says Germany can not rule out new election
- Germany's FDP say they are prepared for coalition negotiations
- EURGBP sliding as European desks evaluate German election fallout
- New Zealand election - recap
- NZD slides further
- ECB's Mersch says "overriding" priority is price stability
- Kuroda says by aiming for 2% price target the BOJ can contribute to long-term FX stability
- More from Kuroda: BOJ will continue to carefully watch FX moves
- More from Kuroda (2): Clearly premature to review BOJ monetary policy or discuss exit strategy
- BOE PRA to set extra capital requirements on a bank-by-bank basis
- France to announce EUR 58bln of investments over next 5 years
- BP say OPEC needs to extend output cuts beyond Q1 2018 to achieve rebalancing
- China will focus on lowering leverage ratios among state-owned firms to reduce debt risks
- Japan's economy is on moderate recovery still
- Forex option contract expiries for today 25 Sept
- USDCAD slides as oil prices rally
- Trading ideas for the European session 25 Sept
- Nikkei 225 closes up 0.5% at 20,397.58
- ForexLive Asia FX news wrap: German and NZ elections - Japan next?
Data:
- Germany Sept IFO business climate 115.2 vs 116.00 exp
- Japan July leading index CI final 105.2 vs 105.00 exp
A busy enough session to start the week as the euro reverberates to the sound of the German election uncertainty.
Focus on the German election had been side tracked in Asia by the New Zealand result but as European trading got underway so we saw the euro start to slide on the poor showing by Merkel's CDU/CSU coalition and the rise of the far-right AFD party.
We've seen EURUSD drift down from 1.1935 to post lows of 1.1875 with EURGBP starting the move early doors from 0.8830 to 0.8810 then 0.8787 which in turn pushed GBPUSD up to 1.3571.
Then we saw a rebound as EURGBP rallied back to 0.8810 sending GBPUSD down to 1.3518 before rallying to 1.3535 only to fall again to 1.3487 in what has been a rollercoaster session.
USDJPY had been up to 112.50 in Asia and held its ground around 112.25 for the most part but has tested 112,00 on a combo of EURJPY and GBJPY supply as Abe announces a 2trln yen economic package and an early election.
USDCAD has drifted lower on stronger oil prices with Brent posting $57.34, levels not seen since 3 Jan
The NZ $ has traded tightly after the post-election falls in Asia with 0.7260 support holding but failing to get back above 0.7300
NZDUSD 15m
Equities opened lower while gold had an early rally from $1291 above $1296 only to fall back into $1293.50. AUDUSD has been tightly pinned down 0.7950-70 for the most part.
CB talking heads coming up: GMT
- US Fed's Dudley 12.30
- ECB's Draghi 13.00 -Introductory statement by the President at the ECON Hearing at the European Parliament in Brussels, Belgium.
- ECB's Coeure 14.45
- US Fed's Kashkari 22.30
