Forex news from the European morning session 18 November 2014



It’s been an interesting session with plenty of opportunity as most core pairs have enjoyed their time in the sun and Japanese PM Abe finally confirms sales tax delay and snap election.

USDJPY had enjoyed decent support on the back of a decent Nikkei session and was underpinned around 116.60 before drifting higher as talk on Abe’s proposed presser continued to circulate. We saw 117.05 highs with EURJPY finding particular favour to 146.71 just ahead of the 146.80 barrier as ZEW data gave the euro a lift but on the confo of sales tax delay and snap election the market was quick to sell fact with USDJPY dipping to 116.39 and EURJPY falling to 145.85.

That ZEW data and yen pair buying also saw EURUSD finally bust through 1.2500 then 1.2525 to trigger stops to 1.2541 only to come to a grinding halt and head back to 1.2510 as EURJPY lost its mojo. EURGBP had a look at the offers into 0.8010 after making solid gains from 0.7975 but has also retreated back to 0.7987.

The pound has had a mixed time of it with cable finding a few bids below 1.5650 again after CPI failed to spring any surprises but capped by the EURGBP buying after ZEW only to then perk up again as that pair came lower.

AUDUSD made solid gains into 0.8750 buoyed by Stevens initially springing no surprises and AUDJPY buying but later q&a comments gave the currency a shove lower again. NZ $ has had a better session overall but still found itself in retreat from the highs while USDCAD remains on the back foot but holding 1.1250 so far.

Plenty going on out there, and opportunity to be had, but it’s oh so scrappy still.