Forex news from the European morning session 28 Jan

News:

  • Japan's Amari resigns as economy minister
  • Japan's Abe to name Nobuteru Ishimara as new economy minister
  • Iran's Rouhani says low oil prices will not last a long time
  • Kuwait to base its 2016/17 budget on oil price of $25
  • SNB's Zurbruegg says negative interest rate is an "essential tool"
  • SNB's Zurbruegg says ECB easing will inevitably contribute to euro fall
  • China's Li tell Lagarde not to worry about yuan instability
  • PBOC to increase open market operations until 19 Feb
  • Brazil's central bank notes says oil prices entail risk for global financial stability
  • What? A finance minister who makes a sensible financial decision?
  • Cable rally capped into 1.4350 again
  • German regional inflation on the rise
  • Chinese equity markets close lower again 28 Jan
  • Option expiries 10am NY cut today 28 Jan

Data:

  • Q4 2015 UK preliminary GDP 0.5% vs 0.5% exp q/q
  • January 2016 Eurozone economic sentiment 105.0 vs 106.4 exp
  • Saxony Jan CPI mm -0.9% vs 0.0% prev
  • Bavaria Jan CPI mm -0.8% vs -0.1% prev
  • Spain Q4 unemployment rate 20.9% vs 21.05% exp
  • Germany import price Index Dec mm -1.2% vs -1.1% exp
  • Nikkei 225 closes down -0.71% at 17,041.45

Another busy session but it had little to do with any post-FOMC fall out.

Early euro demand on softer equities remained even as European markets pared losses and we saw EURUSD post 1.0927 from 1.0885 and EURGBP up to 0. 7664. The move was exacerbated by EURJPY triggering stops through 129.50 after Amari's resignation as Japan's economy minister.

The EURGBP rally was ending/fading as UK Q4 GDP came in as expected but that was enough for a GBP relief rally that saw cable post 1.4347 and EURGBP drop to test 0.7600 before both retreated.

That selling pressure helped EURSD wander off back toward 1.0900 as USDJPY remained underpinned above 118.70 but failed to breach 119.00. USDCHF has been in retreat as EURCHF found some willing sellers after posting 1-year highs of 1.1082 with the SNB cited as a factor in the move higher.

Canadian and Australian $ have both benefitted from firmer oil/commodity prices but NZ$ has lagged behind on post-RBNZ dovish sentiment.

German CPI and US durable goods among the data highlights to come but markets will be keeping an eye on oil and equities still.