Forex news from the European morning session 21 September

News:

  • Spain's Linde says normalization of monetary policy in US and UK is expected in the next month or quarter
  • China does not have an unstable economy
  • ESM's Regling sees solid European growth with some upside risk
  • BUBA still waiting for German manufacturing revival
  • Citigroup revises forecast for BOE rate hike to Q4 2016
  • Here's one to please the GBP bulls: Unicredit says BOE rate hike coming sooner rather than later
  • EU's Wieser says first Greek bailout review to start in October EU expects Greek review to happen this Autumn
  • China and UK agree on extension and expansion of renminbi/pound swap line
  • HKMA back in selling HKD 2.3bln to maintain trading band
  • PM Key says business activity levels in NZ remain strong
  • Australia's Morrison says confidence in jobs is central to economic plan
  • Australia's Turnbull says govt is focussing on restoring economic confidence
  • Morgan Stanley just shorted EURJPY at 136.10
  • Option expiries 10am NY cut today 21 September

Data:

  • Germany PPI August mm -0.5% vs-0.3% exp
  • Greece July current account balance EUR +4.25bln vs +1.27bln in July 2015
  • Spain trade deficit July EUR -1.396bln vs -2.046bln prev
  • Swiss total sight deposits w/e 18 Sept CHF 464.95bln vs 464.26bln prev

It's been a cautious start to the week with traders treading carefully and the post-F0MC jury still out

The session started with EURUSD and GBPUSD rallying to post highs of 1.1330 and 1.5568 given support by the buying of yen pairs with USDJPY also rallying from 119.80 to 120.39

Since then we've seen the impetus run out and traders quick to book profits which had cable back down to test support into 1.5500 and EURUSD retreat to 1.1285 with USDJPY stalling and EURJPY moving back below 136.00

Further weakness in euro pairs as I type is seeing EURUSD on 1.1250, EURGBP 0.7258 and EURJPY 135.62 as the US open up to Bullard's bullish comments having some impact

USDCHF has had softer tones though with EURCHF under pressure to test 1.0900 from 1.0950 while USDCAD has drifted from 1.3220 to 1.3185 as oil prices firmed

AUDUSD and NZDUSD have trawled along the bottom of tight ranges with support at 0.7150 and 0.6330 holding so far

Little by way of data to follow but BOC gov Poloz speaks later. Expect more scrappy moves