Forex news from the European session 18 Nov

News:

  • BOE's Broadbent sees a problem with focussing on actual date for interest rate lift-off
  • There's danger in looking at market yield curves for rate hike date says Broadbent
  • More from Broadbent: No virtue in rate hikes of less than 0.25%
  • Latest Paris shootings : 3 suspects reported killed in the raid
  • French government confirms today's siege in Paris is now over
  • ECB's Mersch sees no economic pessimism after Paris attacks
  • China to splash the cash to the tune of ¥15bn over two years
  • UAE says they do not regret decision by OPEC last year to keep production unchanged
  • Swiss Government: Jordan can intervene on FX markets
  • Goldman Sachs and their 3 steps to parity in EURUSD
  • Cable pushes through 1.5220 to test 1.5250 again
  • EURUSD looking to break the break
  • Option expiries 10am NY cut today 18 Nov

Data:

  • September 2015 Eurozone construction output -0.4% vs -0.2% prior m/m
  • November 2015 Swiss ZEW investor sentiment 0.0 vs 18.3
  • Nikkei 225 closes up +0.09% at 19,649.18

It's been an understandably understated session once more as we wait on the FOMC Minutes at 19.00 GMT but there's been opportunities again

Early moves were limited but then European equity markets opened lower and we saw the euro make gains across the board with its recently found funding ccy status

EURUSD rallied to 1.0692 from 1.0655, EURGBP to 0.7021 from 0.7008, and EURJPY to 131.78 from 131.20 with similar moves in other euro pairs to a lesser or greater extent

But the grind higher came to an end as fresh supply re-appeared and equity markets pared some losses. Cue a retreat back to 1.0660, 0.7006 and 131.52 and we've traded tightly since

The EURGBP demand put an early cap on cable around 1.5200 but the retreat gave the pair a nudge higher into the 1.5220 offers which then got taken out on BOE Broadbent's slightly UK-hawkish comments. Cue a run up to test the next layer into 1.5250 where we've duly stopped and returned to 1.5209 before finding fresh buyers

USDCHF has wandered lower to 1.0130 from 1.0160 as EURUSD rallied but USDJPY has held its ground above 123.30 albeit controlled by cross plays

USDCAD has dipped into 1.3300 from 1.3325 on firmer oil price only for that to be reversed while AUDUSD and NZDUSD have had similar tight crosspair-influenced tight ranges

US housing starts and building permits coming up could add impact