Forex trading headlines from the European morning session 10 September
- Japan’s Abe asks govt to prepare another package of stimulus
- Chinese industrial output august y/y +10.4% vs +9.9% exp +9.7% prev
- Chinese retail sales august y/y +13.4%vs +13.2% exp/prev
- Chinese M2 money supply +14.7% y/y end august
- Syria: China welcome and supports Russian proposal
- Syria: Fabius says France will put resolution to UN demanding Syria admit to chemical weapons stash
- Italian Q2 GDP final -0.3% vs -0.2% exp/prev
- French industrial output july -0.6% vs +0.6% exp -1.4% prev
- EU transaction tax hits a major legal wall
- ECB’s Visco sees EZ contraction ending but unsure on timing
- Nikkei closes up 1.54% at 14,423.36
- Shanghai comp index closes up 1.15% at 2237.98
Plenty going on this morning but the main play has been yen weakness after it was revealed that Japanese PM Abe has ordered his govt to prepare an economic package including further stimulus in a bid to counter the impact of the planned sales tax hike.
USDJPY jumped from 99.55 to 99.85 on the news and then finally chewed its way through good offers at 100.00 and then 100.20-30 to post highs of 100.37 so far. EURJPY has climbed to test strong sell interest at 133.00 while AUDJPY has been up to 93.20 lifting AUDUSD back up by the boot-straps having had a run down to 0.9238, having first failed to get through 0.9300.
EURUSD has also been caught in the cross-fire and eventually came lower to 1.3235 before finding a few cross-based buyers. EURGBP had an early look above 0.8450 but didn’t like it and fell to 0.8426 before bouncing while GBPUSD has traded quietly around 1.5700 mainly having failed to get above 1.5720 in the early rally.
Add: The loonie continues with its stronger commodity based tone as I highlighted yesterday as USDCAD falls further to 1.0332 and with traders seeing CADAUD buying.
Lots of opportunity and plenty more to come I’m sure.
