Forex news from the European morning session 4 Nov

News:

  • US Fed's Brainard says US$ appreciation is a drag
  • ECB's Nouy says Eurozone banks still face significant credit risk
  • ECB's Constancio says financial stability can also harm price stability
  • ECB's Constancio says central banks must lead, not follow markets
  • EU's Moscovici says Greek debt relief can be discussed after review completed
  • ECB won't make decisions based on other central banks says Coeure
  • Japan's Abe says government to soon consider policies to boost investment
  • Japan's Amari says he is not considering compiling extra budget for economic stimulus spending
  • Bank of Thailand keeps key interest rate unchanged at 1.5%
  • Moody's say global sovereign credit quality is stable despite downside risks
  • Car maker Honda says it assumes USDJPY rate of 118 for FY2015/16 vs 115 previously
  • There is no clear sign of an oil price recovery says Kuwait
  • What's the biggest news the BOE will take from the UK PMI's?
  • Option expiries 10am NY cut today 4 Nov

Data:

  • UK Markit/CIPS services PMI Oct 54.9 vs 54.5 exp
  • September 2015 Eurozone PPI -0.3% vs -0.5% exp m/m
  • Eurozone Markit services PMI Oct final 54.1 vs 54.2 exp
  • US MBA mortgage market index 414.2 vs 417.4 prior
  • Germany Markit services PMI Oct final 54.5 vs 55.2 exp
  • France Markit services PMI Oct final 52.7 vs 52.3 exp
  • Italy Markit services PMI Oct 53.4 vs 53.6 exp
  • Japan consumer confidence index Oct 41.5 vs 40.8 exp
  • Nikkei 225 closes up +1.37% at 18,926.91

It's been all about the euro again but the kiwi $ has had its on tale of woe

Euro was in retreat from the off as equity markets got a lift Chinese exchanges and we've seen EURUSD down to 1.0915 from 1.0955, EURGBP to 0.7074 from 0.7105 and EURJPY 132.28 from 132.75

EURCHF joined in the move and posted 1.0812 from 1.0865 tempering USDCHF gains at 0.9936 and sending that pair back below 0.9900

USDJPY has made a few gains albeit battling initially against EURJPY supply and we've seen 121.34 again after an early dip to 121.00 on a softer session into the close for the Nikkei

NZDUSD remained under the cosh in Asia after a low GDT auction/USD+ double whammy hit the pair in NY yesterday and we've seen a further fall to 0.663 this morning before finding fresh demand as per the order board

USDCAD found itself on the back foot as oil price firmed and we've seen 1.3044 so far after failing to hold above 1.3080 while AUDUSD failed above 0.7210 but has decent demand into 0.7180

US PMIs coming up later to add some potential impact as attention turns to BOE tomorrow and US NFPs on Friday