Forex news from the European morning session 25 Nov

News:

  • ECB to broaden QE bond buying and thinks about two tiered charges for bank deposits
  • ECB's Constancio says QE decision dependant on incoming data
  • ECB's Constancio doesn't see contagion coming from US Fed rate hike
  • ECB's Constancio says it's very clear that we don't have an FX objective
  • ECB to temporarily halt APP operations between 22 Dec - 1 Jan
  • Hansson says he doesn't see a reason for ECB to act
  • ECB sees higher financial stability risks from outside Eurozone
  • Austerity worked says ECB's Honohan
  • We're seeing the results from QE says ECB's Honohan
  • Merkel says Germany is prepare to step up military commitments
  • Bundesbank: Risks from low rate environment must be tackled
  • Russia will not wage a war against Turkey says Lavrov
  • BOE to keep rates unchanged but first hike is dependant on the Fed
  • ECB to increase QE to €75bn per month - Reuters Poll
  • Russian/Turkish joint projects in jeopardy after plane downing
  • Preview: UK gets to hear the extent of government spending cuts today
  • Barriers ahoy in EURUSD
  • Large option expiries today cast another shadow over the euro
  • Option expiries 10am NY cut today 25 Nov

Data:

  • Italy industrial orders Sept mm -2.0 vs -5.2% prev
  • Spanish PPI Oct -0.7% vs -0.9% prev
  • US MBA mortgage market index 419.9 vs 433.9 prior
  • September 2015 Italian retail sales -0.1% vs 0.3% prior m/m SA
  • French consumer confidence Nov 96 vs 95 exp
  • Switzerland UBS consumption indicator Oct 1.6 vs 1.56 prev
  • Nikkei 225 closes down - 0.39 % at 19,847.58

It's been all about the euro today as a combo of firmer equity markets and talk of some extraordinary easing measures being discussed by the ECB combined to send the ccy tumbling again.

EURUSD had been looking ok early doors and was posting 1.0680 from 1.0660 before European equity markets opened higher and then Reuters ran a story from their sources about additional easing tools being considered.

Cue a fairly straight line fall in the ccy across the board pausing to wipe its feet into 1.0620-30 then 1.0600 before then another knock lower to 1.0580 . Euro pairs all took a similar journey south. Large options in play too.

GBPUSD failed to hold gains over 1.5100 and started to move lower but from 1.5075 we've seen decent support helped by the falling EURGBP and we've seen a move back toward 1.5100

USDJPY and USDCHF have both seen decent rallies but capped by the euro sales while USDCAD also rallied from 1.3280 support lines to post 1.3330 as oil prices softened

AUDUSD has felt the pressure of USD demand and fallen below 0.7250 support from 0.7280 early on while NZDUSD similarly fallen from 0.6865 to test 0.6540-50 support/bids

US durable goods and initial jobless claims at 13.30 GMT the next data risk points

Lots going on and will continue for a while yet