Forex trading headlines from the European morning session 27 September
- BOE governor Carney says he does not see a case for further QE. More here and here
- UK Nationwide HPI september m/m +0.9% vs +0.5% exp +0.7% prev
- China state council says it will test interest rate reforms in Shanghai trade zone
- US Fed’s Evans says headwinds are adding to a weak economy
- Evans says Fed wasn’t quite ready to taper
- China SAFE says strong USD and US recovery will help exports
- French final Q2 GDP +0.5% as exp/prev
- Swiss KOF leading indicator september +1.53 vs +1.47 exp +1.37 prev
- EZ economic sentiment september +96.9 vs 96.00 exp +95.3 prev
- UK service sector output july m/m +0.2% vs unch prev
- French consumer spending august m/m -0.4% vs -0.5% exp
- Italian business confidence september +96.6 vs +93.4 exp/prev
- Spanish retail sales august -4.5% vs -3.4% prev. 38th straight fall
- S&P see nothing wrong with negative outlook on Japan sovereign rating
- Nikkei closes down 0.26% at 14,760.07
- Shanghai comp index closes up 0.2% at 2160.03
- Aussie $ lower on RBA rate cut rumours
- Month-end CHF buying triggers sharp gains
TGIF !
There I was sitting at my desk chewing on a stewed cup of green tea, darkness still prevailing outside, prices doing buggar all,and then wham! Pound surges on Carney ” I don’t see a case for more QE ” quote published online in a regional newspaper from a meeting taken place yesterday. I mean, what’s that all about ?!
Anyhow there it was in black&white and all over the wires. Cable posted 1.6132 from 1.6065 and EURGBP was testing barrier option support at 0.8350 by posting 0.8362 from 0.8402. Elsewhere the GBP action was the same.
And then just as we ( well, some of us) were looking for it to fall back the perky pound got another lift back to 1.6120 from 1.6098 on strong house price data. But then finally the coast was clear for it to drift all the way back down again as Europe’s week-weary traders got to their desks and liquidity returned. Funny ol’ start to the day for sure.
Elsewhere it’s been a little more sedate with EURUSD and USDJPY trading tightly but the swiss franc has shone on month-end buying and USD jitters. USDCHF and EURCHF both breaking down through good support points.
And not to be left in the shade the once perky aussie $ found itself under fire after rumours of an interest rate cut from the RBA next week began to whisper their way around the wires. Cue an initial 30 pip drop on AUDUSD to 0.9325 and then a further test of buying interest around 0.9300.
And that’s about it ! Anyone looking for a quiet end to the week had to hide under the duvet to avoid this volatile session. It’s been a lively little week and this was an appropriate way to end it. I hope our ForexLive fraternity came out on the right side of it.
