Forex news from the European morning session 15 Oct


  • ECB's Nowotny says additional sets of instruments are necessary
  • Spain's Restoy says ECB could extend QE if inflation not compatible with goal
  • Japan's Suga says Abenomics' Arrows 1&2 have clearly succeeded
  • ECB's wants to ease Greek bailout payment conditions - Livesquawk
  • BOE says banks will need between £2.2-3.3bn as ring fencing capital
  • S&P cuts 2015 Russian GDP forecast to -3.6% vs -2.6% prev
  • Fitch says New Zealand's budget surplus underscores its Positive outlook
  • Moodys says Japanese banking system stable
  • Barclays says RBA rate cut to offset Australian banks' tightening is no sure thing
  • Did the Nowotny comments really justify such a reaction in the euro

  • Are we finally seeing a break in USDJPY?

  • Euro sell-off has knock-on effect elsewhere

  • Option expiries 10am NY cut today 15 Oct


  • Japan capacity utilization Aug mm -0.9% vs -0.2% prev
  • Nikkei 225 closes up +1.15% at 18,096.90

It's been a session that's seen the US$ still in retreat overall but the euro gave up early gains in rapid fashion on Nowotny comments

Early trading saw USDJPY fall back a little as the Nikkei gave up some of its gains and that gave a negative tone to the greenback generally

GBPUSD had a look at 1.5500 from 1.5475 and EURUSD rose to post 1.1495 ahead of large, barrier-option related, offers at 1.1500

But then both pairs ran out of steam and USDJPY was holding above 118.70 when Nowotny's comments hit the screens and down we fell in quick time. EURUSD eventually posted 1.1425 from 1.1475 with EURGBP down to 0.7383 from 0.7420 and EURJPY to 135.22 from 136.30 as USDJPY gave way to have its own wobble to 118.09 in a rush

EURGBP supply gave another lift to cable and we've had 1.5508 so far with NZD, CAD and AUD all benefiting from the US$-neg/Nowotny double-whammy

Good two-way business since but USD demand definitely on the wane as we await the US CPI data at 08.30 GMT and Empire State/Philly Fed mftg indices after that.