Forex news from the European morning session 11 Jan - If you don't/didn't get Bowie then you don't get life itself

News:

  • PBOC says it will expand re-lending programme
  • Latest OECD monthly indicators suggest stabilisation of Chinese economy
  • EU's Mogherini says sanctions on Iran can be lifted soon
  • IEA's Birol says climate accord to impact energy markets directly
  • Spain's Sanchez repeats he will not back the re-election of Rajoy as PM
  • Saudi Arabia remains committed to the USD peg for the riyal
  • Moody's cuts Malaysia's sovereign rating outlook to stable from positive
  • BOA Merrill lowers 2016 average forecast for Brent crude oil to $46 per barrel
  • Westpac sees NZDUSD heading lower still
  • David Bowie RIP
  • Cable rally falters as EURGBP finds demand in the dip
  • European markets stabilise after another Chinese strop
  • Option expiries 10 am NY cut 11 Jan

Data:

  • SNB sight deposits rise to CHF 469.50bln vs 467.93bln w/e 8 Jan
  • January 2016 Eurozone Sentix index 9.6 vs 12.2 exp
  • Switzerland retail sales Nov real -2.1% vs -1.1% prev

The financial markets have been lively again after renewed losses on Chinese equity markets and intervention by the PBOC to sell USDCNY, but I don't exaggerate when I say the spotlight has been well and truly on the sad passing of David Bowie from cancer.

The Chinese losses didn't spook European markets, tempered as they were by the yuan appreciation, and as equities turned higher after a negative opening it was time for risk-on trades again which saw USDJPY and USDCHF move higher and the euro come under renewed pressure.

We had already seen a slide as EURGBP retreated from thin-liquidity driven highs of 0.7555 in Asia and it was a one way slide to 0.7460 before buyers stepped back in. That move lower gave GBPUSD a lift up from 1.4491 lows but ran into fresh supply at 1.4585

EURUSD fell from 1.0930 to 1.0872 but it too found dip buyers to breach 1.0900 again while USDJPY posted 117.93 before running into 118.00-based supply with USDCHF similarly failing at 0.9989 ahead of 1.0000 offers/res.

Oil had an early rally with the risk-on sentiment and has remained relatively buoyant albeit off its highs and we've seen USDCAD fall from 1.4170 to test 1.4100 after 13-year highs of 1.4188 in Asia.

AUDUSD and NZDUSD have both staged rallies from Asian lows helped by yen-pair demand on the risk off but rally sellers lurking still.

Busy times but it's all about Bowie today. For this writer at least.