Forex news from the European morning session 7 Dec

News:

  • BOJ's Kuroda says inflation trend is improving
  • OECD says leading indicators point to stable growth in Eurozone
  • French employers' group boss urges emergency measures to fight unemployment
  • USDCAD rises to 11 year highs as oil price concerns continue
  • AUDUSD and NZDUSD will continue to fall say UOB
  • Why banks are shutting down their dealing desks
  • Option expiries 10am NY cut today 8 Dec
  • Notable option expiries for the rest of this week

Data:

  • Q3 2015 Eurozone GDP revision 0.3% vs 0.3% exp q/q
  • October 2015 UK industrial production 0.1% vs 0.1% exp m/m
  • UK Halifax house price index Nov mm -0.2% vs +0.2% exp
  • November 2015 US NFIB small business optimism index 94.8 vs 96.4 exp
  • Bank of France business sentiment index Nov 98 vs 99 exp
  • Japan economy watchers survey Nov current 46.1 vs 48.7 exp
  • Nikkei 225 closes down -1.04% at 19,492.60

It's been another steady session which has seen USD demand, a bit of early euro strength and pound in retreat for most of it

The euro looked ok to begin with as equity markets made early losses and we saw EURUSD up to 1.0882 from 1.0855 but then turned lower into 1.0840 on general US$ buying and equities paring losses

EURJPY posted 133.88 with USDJPY hanging on to 123.00 but then also found itself in retreat and USDJPY edging back above 123.10. EURGBP though has looked underpinned from the off and posted 0.7240 from 0.7215 which in turn capped GBPUSD above 1.5050

That GBP weakness was temporarily reversed on better UK production data but cable only managed to post 1.5032 from 1.5017 and that was a signal to encourage further selling eventually breaking 1.5000 support to test the next layer into 1.4985. Overall the pound has seen a similar pattern to the session

USDCHF has felt a bit of pressure after failing to hold above 1.0000 again with EURCHF supply above 1.0850 adding to the move lower to 0.9960 support

USDCAD though has taken full advantage of faltering oil prices and general USD demand to post 11-year highs of 1.3557 and finding subsequent support into 1.3540 before then posting new highs of 1.5560

AUDUSD has maintained its offered tone after Asian falls from 0.7265 but it's clinging onto 0.7200 with strong demand noted there, while NZDUSD capped into 0.6660 to return to 0.6616 as I type

Not a lot of data to come but BOC gov Poloz speaks at 17.50 GMT with Canadian housing and US JOLTs data before that