Forex news from the European morning session 7 Dec

News:

  • BOJ's Kuroda says not in favour of Japan having negative deposit rate
  • BOJ's Sato says no need to respond to small risks with monetary policy
  • Greece wants IMF out of the bailout programme
  • China's forex reserves end-Nov USD 3.44trln vs USD 3.53trln end-Oct
  • SNB forex reserves end-Nov CHF 562.72bln vs 551.51bln end-Oct
  • Australian foreign reserves Nov AUD 68.2bln vs AUD 64.3bln prev
  • BOE's Carney presents to EU parliament committee today
  • Citigroup to come under ECB supervision after merger
  • Euro traders are looking for fresh longs - Are they right?
  • Goldman Sachs raises EURUSD forecasts
  • After the ECB: What's next for EURUSD ?
  • Fall in China's forex reserves adds to euro slippage
  • RBNZ likely to cut interest rates on Thursday
  • Option expiries 10am NY cut today 7 Dec

Data:

  • Germany industrial production Oct mm SA +0.2% vs +0.8% exp
  • December 2015 Eurozone Sentix index 15.7 vs 17.0 exp
  • Japan leading index CI Oct prov 102.9 as exp
  • Nikkei 225 closes up +0.99% at 19,698.15

It's been a session that's seen US$ gains with the euro coming in for particular attention

It was a slow start following on from a slow Asian session but then we saw a general swathe of greenback grabbing which saw EURUSD down to 1.0835 from 1.0865, GBPUSD 1.5054 from 1.5080 and AUDUSD testing 0.7300 from 0.7330 amongst various moves. Falling iron ore prices adding to the Aussie $ supply

Then came a further move lower across the board for the euro with EURGBP down to 0.7167 after failing to get back above 0.7200 and that in turn put a bid under GBPUSD but gave EURUSD another shove lower to test 1.0800

EURJPY has posted lows of 133.35 driven by supply in both core pairs

USDJPY had been trading tightly around 123.30 on a firmer Nikkei and we then saw a move up to test offers/res into 123.50 only to fail at 123.48 with USDCHF rallying back through 1.0020 from 0.9980

USDCAD struggled intiially to crack 1.3400 but as oil price fell the pair needed little excuse to advance to post 1.3448 so far while NZDUSD has fallen back through 0.6700 to test support/bids around 0.6660 again

It's likely to be a scrappy start to the week with low volumes being reported so far and with little by way of data today or tomorrow