Forex news from the European morning session 27 January 2015
News:
- SNB’s Danthine: Still prepared to intervene in FX market
- SNB’s Danthine says current level of EURCHF not justified
- Swissy pairs surge higher again
- Swiss pairs tumble lower again
- ONS says “it’s too early to say” if there is a general UK economic slowdown
- UK’s Osborne says GDP data confirms UK recovery is on track
- Moody’s says Greek election outcome is credit negative because it prolongs risks
- Schaeuble says Greek public are not suffering due to decisions by Berlin or Brussels
- B+ for the UK end of year report card. What does 2015 have in store?
Data:
A nutty session dominated by the swiss franc after SNB comments saw CHF pairs first surge then fall back even further in rapid time, pulling other pairs around with them
Strangly when the Danthine comments came out ( in two separate tranches from interviews with three different newspapers) there was little market reaction and many ( your writer included) put it down to a belief that the SNB were posturing but then Bang! A quick look at you USDCHF and EURCHF charts, not to mention GBPCHF, CHFJPY et al, will give you the detail but in summary we saw a surge to 0.9169 and 1.0388 from 0.9005 and 1.0140 in very thin conditions. Then the oxygen got thin and we plummeted to new session lows of 0.8930 and 1.0082
The EUR demand here had a knock-on effect across the board and we saw EURUSD up to 1.1346 from 1.1305, EURGBP to 0.7505 from 0.7455 and EURJPY to 133.81 from the early fall to 132.50 as yen pairs got sold off as USDJPY failed to make gains in the wake of a stronger Nikkei close
USDJPY had fallen to 117.85 only to rebound to 118.20 from whence it came with yen pairs following suit only to head back south as the CHF dust settled around the lows. And as EURCHF settled down we saw a belated drop in EURUSD from 1.1315 to 1.1261
The pound found itself having a wobble after weaker than expected Q4 GDP flash with GBPUSD dipping to 1.5060 and EURGBP up to 0.7512 before finding some support back to 1.5090 and now 1.5122 as I type with EURGBP also finding its way back to 0.7468
USDCAD has been up to have a look at the 1.2500 barrier option from 1.2440 before retreating to 1.2470 while AUDUSD and NZDUSD have traded tightly as cross plays from the EUR/CHF action dominated.
Crazy days and if you like volatility then you’ll be loving this but be careful what you wish for, if you’re not fully prepared
