Forex news from the European morning session 28 Sept

News:

  • ECB's Vasiliauskas sees no reason for them to act
  • ECB's Lautenschlaeger says it's too early to talk about expanding QE
  • BOJ's Kuroda says they will continue easing until 2% inflation is stable
  • BOJ's Kuroda hopes govt continues to take steps to boost Japan's growth potential
  • More from Kuroda: Desirable for fx to reflect economic fundamentals
  • Even more from Kuroda: Expects CPI to move around 0.0% for now
  • Kuroda doesn't know if Japan will post two straight quarters of contraction
  • Latest polls show the UK referendum on EU will be a close run thing
  • BOE's Cunliffe worried about financial risks emerging in new areas
  • UK's McDonnell says BOE would retain its independence under a Labour government
  • Notable option expiries coming up this week
  • Are you ready for 5 days of madness?
  • Cable gets a lift from repeated M&A talk
  • Switzerland opens investigation of precious metals manipulation
  • Option expiries 10am NY cut today 28 Sept

Data:

  • Italy consumer confidence index Sept 112.7 vs 108.7 exp
  • Japan leading index CI July final 105.0 vs 104.9 prev
  • Nikkei 225 closes down -1.32% at 17,645.11

It's been a steady start to the week but not one without opportunity

The session has seen initial USD demand but really started on weaker European equity markets which in turn gave a bit of support to the euro and we saw EURUSD climb back toward 1.1200 from 1.1165 also buoyed by some month-end related EURGBP demand again

That pair has seen some good two-way business though and M&A related cable demand saw it test support into 0.7330 from 0.7360 only to bounce back above 0.7350 again

GBPUSD dipped early on from 1.5203 to 1.5180 again but then saw that strong rally only to run out of steam into good supply at 1.5250 and we're back below 1.5200 again now

USDJPY found support at 120.20 as the Nikkei steadied after early losses but 120.50 proved a step too far again and we've been down to test 120.00 while USDCHF similarly started brighter around 0.9800 but has flattered to deceive making little headway albeit with demand into 0.9780

AUDUSD too has been under pressure for most of the morning having failed to breach 0.7050 and now testing 0.7000 again while NZDUSD also found itself on the back foot after failing into 0.6400 and now looking at 0.6250 support again

USDCAD found support into 1.3320 and has made steady progress to 1.3372 helped by softer oil prices

Not a volatile morning but scrappy nonetheless although providing good pip opportunity again