Forex news from the European morning session 26 Feb



  • G20: World Bank's Kim says he would be surprised if there was co-ordinated G20 policy
  • G20: Schaeuble says debt-funded growth leads to zombifying the economy
  • G20: China's Lou says focus will be on responding to short-term economic risks
  • G20: Dijsselbloem says monetary policy can still do more
  • G20: US Treasury official confirms what thought anyway
  • G20: Global economy facing great deal of uncertainty but no crisis currently
  • G20: Italy's Visco says ECB will not allow inflation expectations to de-anchor
  • EU's Moscovici says Greece needs to implement crucial reforms
  • Yen options building up into the Japanese financial year end
  • Collapsing German inflation sends the euro into ECB expectation mode
  • Chinese equities close firmer on the day, weaker on the week
  • Option expiries 10am NY cut today 26 Feb
  • More option expiries of note w/c 29 Feb
  • Nikkei 225 closes up +0.3% at 16,188.41


  • Saxony CPI Feb mm +0.3% vs -0.9% prev
  • Bavaria CPI Feb mm +0.3% vs -0.8% prev
  • France CPI Feb flash mm +0.2% vs +0.4% exp
  • France Q4 GDP flash +0.3% vs +0.2% exp
  • February 2016 Eurozone economic sentiment 103.8 vs 104.4 exp
  • Spain CPI mm -0.3% vs +0.1% exp
  • Switzerland Q4 Non-farm payrolls 4.897m vs 4.903m prev
  • Italy hourly wages Jan mm 0.0% as prev

It's Friday and we're heading into month-end. Cue a busy session with the pound in blink-and-you-miss-it mode.

The pound was off the blocks quickly even as European traders were making their way to the office and early moves saw cable dumped from 1.4005 to 1.3960 as EURGBP climbed to test 0.7925 again. It wasn't long though before it bounced back as firmer European equity markets and softer regional German inflation data saw the euro getting sold in steady fashion.

EURGBP fell back to 0.7875 then another wave to finally post 0.7843 which saw cable post 1.4043 before then running all the way back down to 1.3941 in rapid time and a move that saw EURGBP to test 0.7900 again. GBPCAD and GBPJPY also notable movers. Large option expiry at 1.4000 today casting its shadow.

EURUSD meanwhile has been down to test decent demand at 1.1000 from opening highs around 1.1060 with EURJPY also heading down through 124.50 to post 124.22.

USDJPY had an early look at good 112.50 demand as the Nikkei pared gains and closed on session lows but was soon finding demand from the risk-off sentiment with European equities firming. 113.00 has proved a step too far though capped by GBPJPY and EURJPY supply amongst others.

USDCHF has shadowed EURUSD with EURCHF remaining bid above 1.0900.

USDCAD fell to 1.3505 as oil firmed but has since found demand on the reverse move to post 1.3535 while AUDUSD and NZDUSD are also both off their highs but enjoying commodity-led demand overall.

US Q4 GDP at 13.30 GMT will be the next key focus with the on-going G20 claptrap to largely be ignored.