Forex trading news and economic data 30 October 2015
Asia session catch up Forexlive Asia FX news wrap: BOJ on hold, USD/yen jumps after dip, Nikkei too
Data
- Japan data: Housing starts (+2.6% y/y), Construction orders (-2.5%)
- September 2015 French consumer spending 0.0% vs 0.3% exp m/m
- September 2015 French PPI +0.1% vs -0.9% prior m/m
- September 2015 German retail sales 0.0% vs +0.4% exp m/m
- September 2015 Italian PPI -0.2% vs -0.7% prior m/m
- October 2015 Italian HICP 0.3% vs 0.2% exp y/y
- September 2015 Eurozone unemployment rate 10.8% vs 11.0% exp
- October 2015 Eurozone HICP flash 0.0% vs 0.0% exp y/y
- October 2015 UK Lloyds business barometer 50 vs 42 prior
- August 2015 Spanish current account balance €1.7bn
- September 2015 Italian unemployment 11.8% vs 11.9% exp
- Swiss KOF indicator falls to 99.8 vs 100.0 expected in October
- Q3 2015 Spanish GDP 0.8% vs 0.8% exp q/q
BOJ & Japan
- Japanese government looking to put together a supplementary budget
- BOJ's Kuroda: Economy has continued to recover moderately
- Kuroda: Capex has not been strong despite strong capex plans in Tankan
- There was no proposal for further easing today says Kuroda
- Kuroda says QQE is having intended effects - USDJPY says it isn't
- BOJ is playing a dangerous game if they're only waiting for oil to save them
- BOJ pushes back CPI target to second half of FY 2016
- BOJ to cut inflation outlook - Nikkei
News
- US debt ceiling bill passes Senate
- USDCNH sold to the tune of $15bn today
- PBOC will support private investment in financial services in Shanghai
- SNB report a loss of CHF33.9bn for last 9months
Fed's Lacker dissented because a rate hike is needed
Forex option expiries for the 10am (14.00GMT) New York cut
Another central bank meeting passes under the bridge. If the market was waiting on Kuroda to spout forth some last dovish comments then it abruptly showed its disapproval by sinking below 121.00, to 120.28 not long ago. The Nikkei was disappointed too and although closing up 147 points, futures went out -140. It looks like either the market is bored of all the talk but no action or that it's all priced in, or that we just can't be arsed to push the boundaries of the current ranges. Either way we're firmly back in wait and see mode
One other cause for the sell off could also have been the removal of the Kuroda risk before end of month players came in to start their rebalancing. Yesterday I tipped that dollar selling was said to be the theme today and there could be a big element of that behind the moves . Keep an eye on the London fix later for more signs of ME
The pound and euro have been chugging their merry way north since yesterday and that's continued today. EURUSD has managed to drag itself into 1.1000 but hasn't made any real gains and the high is 1.1024. Some good signals from European inflation and unemployment have helped. There won't be many revising the Dec action from the ECB but it will be helping the euro maintain a bid. The moves are more to do with general dollar selling though
GBPUSD has been going step in step with EURUSD though has had the door slammed in its face up towards 1.5365. We haven't dropped back too far so maybe another attempt will come later on the US data
Elsewhere it's been pretty ho-hum. AUDUSD sits in a 25 odd pip range between 0.7095 and 0.7120, bar one spike up to 0.7137
US data on the docket later includes further consumer data with incomes and spending, PCE, employment costs and Canadian GDP at 12.30GMT. At 13.45GMT we get the Chicago PMI (all eyes on twitter for that one, and then the final Michigan numbers for Oct
