Forex news from the European session 18 Nov

News:

  • BOJ's Kuroda says economy continues to improve moderately
  • More from Kuroda: BOJ watching 2016 wage talks with great interest
  • Even more from Kuroda: Continuing QQE will not cause problems to financial system
  • Even more from Kuroda (2): Rising USD funding costs not hurting Japanese banks
  • Japan's Abe says GDP decline is due to a drop in inventory investment
  • ECB's Praet says downside risks are prevailing
  • PBOC cuts overnight SLF rate to 2.75%
  • Bundesbank's Weidmann says monetary policy depends on availability of good statistics
  • Swiss watch exports fall the most in 6 years
  • Citigroup say commodities are not yet fully pricing in a December rate hike from the FOMC
  • Extra security measures will add another €600mln to 2016 French budget costs
  • Pound pulled lower again as UK retails data disappoints
  • Egg chasing disappointment leaves sterling crying into its beer
  • Update: Option expiries for the 10am NY cut today 19 Nov

Data:

  • October 2015 UK retail sales -0.6% vs -0.5% exp m/m
  • November 2015 UK CBI industrial trends orders -11 vs -10 exp
  • Eurozone current account balance Sept SA +€29.4bln vs +18.7bln prev
  • Switzerland trade balance Oct +CHF 4.16bln vs +3.52bln prev
  • Spanish trade deficit narrows to -€2.6bln in Sept
  • Japan nationwide department store sales Oct yy +4.2% vs +1.8% prev
  • Nikkei 225 closes up +1.07% at 19,859.81

Seems like the opening line to these wraps lately but we've seen good two-way business for the intra-day traders but offering no real clues on direction

Euro came under early pressure as equity markets firmed and ECB members provided dovish tones and we saw EURUSD down to 1.0668 from 1.0705 with EURGBP down to test support below 0.6990 again from 0.7005. EURJPY fell to 131.43 from 132.00 which in turn capped USDJPY above 123.30.

That pair edged lower to test 123.00 support again after an earlier rally on stronger Nikkei into the close but USDCHF has been well supported above 1.0150 having drifted back from 1.0200 in Asia. Option interest at 1.0155 in play here and EURCHF remains underpinned if failing to make further gains

The pound has found itself on the back foot on the back of UK data but still finding some demand in the dips. GBPUSD fell to 1.5235 from 1.5285 but has since been back above 1.5270 while EURGBP had a move back to 0.7015 before settling around the price. Other pound pairs have had a similar session

USDCAD has traded tightly after its fall in US/Asia with good support below 1.3250 matched by good supply into the pivotal 1.3280 area while AUDUSD similarly has found itself pinned between 0.7150 -80 again caught up in the cross pair action. NZDUSD likewise between 0.6500-30.

Gold has drifted lower while oil had a small rally only to run out of puff

Little on the US horizon to make much impact but markets and traders remain in uncertain mode