Forex news from the European morning session 19 Jan

News:

  • Bernanke says USD rally may have peaked
  • Chinese regulators tighten up on yuan outflow
  • PBOC will lower 3-month MLF rate to 2.75% vs 3.0%
  • PBOC lowers 1-year MLF to 3.25%
  • BOJ disappointed with wage talks - Livesquawk
  • IMF cuts 2016 global growth forecast to +3.4% vs +3.6% prev
  • US recovery weaker than Fed forecast says IMF's Obstfeld
  • IMF in no rush to decide on participation in next Greek bailout - MNI
  • ECB notes strong credit demand from consumers and corporates
  • Any crumbs of comfort for the BOE and ECB after prices data?
  • Has the pound finally found a bottom? GBPUSD forex technical analysis
  • BOE's Carney up to the rostrum at the top of the hour
  • Option expiries 10am NY cut 19 Jan
  • December 2015 UK CPI 0.2% vs 0.1% exp y/y
  • UK RPI Dec mm +0.3% vs +0.2% exp
  • December 2015 UK PPI input prices -0.8% vs -1.7% exp m/m
  • December 2015 Eurozone CPI final 0.2% vs 0.2% exp y/y
  • German CPI Dec final mm -0.1% as exp
  • January 2016 German ZEW economic sentiment 10.2 vs 8.2 exp
  • November 2015 Eurozone construction output 0.8% vs +0.5% prior
  • Eurozone current account Nov SA €+26.4bln vs +25.6bln prev
  • Switzerland PPI Dec mm -0.4% vs -0.2% exp
  • Nikkei 225 closes up +0.55% at 17,048.37

Lots going on in the aftermath of the Chinese Q4 GDP

Equity markets have felt some love since the Asian gains and this has fed through to oil prices with Brent rising to $30.24 and WTI $30.21.

The euro slipped back as the funding currency correlation played out an EURUSD slipped back to 1.0860 with EURGBP sales to 0.7595 adding support to GBPUSD that saw a rally above 1.4300 from 1.4270.

This move got a further leg up on stronger than expected UK inflation data and we saw EURGBP dip further to 0.7582 and cable cap at 1.4340

Risk-on sentiment saw gains for the Aussie and NZ $ with the former eventually taking out 0.6950 offers/res but the firmer oil prices saw USDCAD and CAD pairs lower with the former dipping to 1.4430.

USDJPY felt the love as yen demand disappeared and we've finally breached 118.00 after an impressive rally from 117.60 led by the Asian equity gains.

BOE gov Carney up next and let's see what US markets make of it all on their return from the long week-end