Forex news from the European morning session 20 January 2015



I trust all our US readers had a good day off/long w-e

It’s been a good morning for the Pound as a combination of traders taking profit on short positions and expectations of better data releases this week have seen a move in GBPUSD from 1.5080 to 1.5166 spearhead a decent recovery after losses shown in the last 24 hours

EURGBP has fallen to break 0.7650 support and posted lows of 0.7637 from 0.7693 while GBPCHF rallied to 1.3335 only to retreat in still volatile swiss franc trading

EURUSD climbed back above 1.1600 after ZEW having dropped to 1.1568 earlier on with all eyes and debate firmly fixed on the ECB decision this Thursday . Markets are expecting some QE action as was proved by the SNB actions last week but what remains is how much and in what for. ZEW data was better than expected but only managed to give the euro a brief respite in a session that’s seen it mostly under the cosh.

USDJPY has rallied again on a stronger Nikkei and we’ve seen 118.75 from 118.30 while USDCHF has fallen back from 0.8840 o/n highs to low of 0.8720 with EURCHF still unable to get back over key resistance now at 1.0250-60 and retreating once more to 1.0100 support.

USDCAD had a wobble back to 1.1940 but is now challenging 1.2000 again despite firmer oil prices while AUDUSD and NZDUSD have both been on the back foot after Asian gains on better than expected China GDP data

Gold has enjoyed another good session on its rediscovered safe-haven flows and has posted 4 months highs of $1285 with next resistance faced between $1300-1325

The ECB continues to cast its shadow, but we’ll find out soon enough what lays in store.