Forex trading headlines from the European morning session 10 April
News:
- ECB: Council determined to act swiftly if needed
- ECB monthly report update
- ECB’s Weidmann says they do believe that deflationary risks are quite limited
- China to allow cross-border investment by HK and mainland investors
- Russia’s Shuvalov says the tougher the sanctions are then the more united Russia will become
- NATO’s Rasmussen says further Russian intervention in Ukraine would have grave consequences
- Greece sells €3bn 5 year bonds with €20bn queueing up to buy them. Rate tumbles
- Even more good news for Greece as unemployment falls
- German institutes raise GDP forecasts as expected
- US trade rep Froman says there are still considerable differences on key issues with Japan
- BOJ’s Miyao says Japan’s economic recovery is becoming more broad-based
Data:
- French CPI EU norm final Feb m/m +0.5% vs +0.6% exp
- Italian industrial output Feb m/m sa -0.5% vs -0.2% exp
- Nikkei closes at 14,300.12
- Shanghai Composite Index closes up 1.38% at 2134.30
A lively session from the off as the Nikkei dominates the landscape in the wake of the FOMC Minutes and the subsequent USD sell-off.
USDJPY started around 101.72 but had a brief rally to 101.80 as the Nikkei staged a closing rally keeping a bid under yen pairs. But then the futures took a hit taking out the supposed strong support at 14200 and it was downhill all the way to 101.43 with GBPJPY leading the yen pairs lower.
The GBPJPY selling along with decent EURGBP buying from the 0.8240 lows to 0.8265 helped put a cap on cable after an early rally back to 1.6795 from 1.6772 lows and we’ve since been back down to 1.6765 only to run into more bids. The Old Lady left rates and QE on hold.
EURUSD had an early wobble to 1.3837 on weaker final French CPI and EURAUD selling but since then has found good support and rallied back to the o/n highs around 1.3875 but is also a mixed box of frogs on the day so far.
The aforementioned AUD has been rampant as early buyers of AUDUSD on the dip to 0.9410 sent it soaring in a straight line through strong 0.9450 offers before realising the air had become a little thin and we’ve since retreated to 0.9420.
NZDUSD too has found the lack of oxygen at 0.8745 just ahead of strong 0.8750 resistance and has given up the gains back to 0.8698 while USDCAD has chewed its way higher from the 1.0868 o/n lows to test 1.0900 where more offers lay in wait.
Gold has continued to feed off the expectation of delayed interest rate hikes and has gained another 1% to 1324 from o/n lows of 1311
Great opportunities both sides of the price across the board for those patient enough not to get caught in the middle.
