Forex news from the European morning session 30 Sept

News:

  • BUBA's Weidmann says EU should have clear rules for sovereign debt
  • J P Morgan says Japan is "probably in recession"
  • J P Morgan now expects BOJ to ease on 30 Oct
  • ECB's Hansson sees "moderate" inflation in Eurozone
  • France's Sapin says 2016 budget deficit the lowest since 2008
  • France sees total govt public debt load at 96.3% of GDP by year-end
  • BOJ announces October bond purchase programme
  • RBI's Rajan says India is ready for a Fed rate hike sooner rather than later
  • Hong Kong govt has no wish for any changes to HK$ peg
  • China's gold reserves rise to 54.45m fine troy oz vs 53.93m prev
  • HKMA intervenes again to sell HK$ 12bln to maintain trading band
  • World Bank sees oil prices staying low
  • Pound brushes off GDP data as Current Account improves
  • Option expiries 10am NY cut today 30 Sept

Data:

  • September 2015 Eurozone HICP flash -0.1% vs 0.0% exp y/y
  • Q2 2015 UK GDP final 0.7% vs 0.7% exp q/q
  • August 2015 Eurozone unemployment rate 11.0% vs 10.9% exp
  • Germany unemployment change Sept 2k vs -5k exp
  • Germany retail sales Aug mm -0.4% vs +0.2% exp
  • UK Nationwide house price index Sept mm +0.5% vs +0.4% exp
  • Italy unemployment rate Aug flash 11.9% vs 12.0% exp
  • August 2015 Italian PPI -0.7% vs -0.2% prior m/m
  • September 2015 Italian HICP flash 0.2% vs 0.3% exp y/y
  • France PPI August mm -0.9% vs -0.1% prev
  • Spain current account surplus July EUR 3.0bln
  • Switzerland KOF leading indicator Sept 100.4 VS 101.00 exp
  • Switzerland UBS consumption indicator Aug +1.63 vs +1.59 prev
  • Japan construction orders Aug -15.6% vs -4.0% prev
  • Nikkei 225 closes up +2.7% at 17,388.15

Phew! Bring me that extra large ice bucket for my typing fingers!

The story of the morning is firmer equities again giving the euro a kick lower as traders reverse positions plus softer Eurozone inflation data and we've seen EURUSD down to 1.1202 again from 1.1240 while EURGBP has come down on a double whammy of stronger UK current account data ( shrugging off weaker Q2 YY GDP revision) and EU subsidy payments going though for UK farmers that I highlighted yesterday.

EURGBP has now posted lows of 0.7367 having first held 0.7400 then 0.7380 and that supply has given cable a lift above 1.5200 only to fail again

EURJPY has fared a little better as USDJPY rallied to 120.35 after finally breaking back up through 120.00 in early trading but offers into 135.00 added to the general euro weakness

EURCHF has found support above 1.0900 but similarly has still a big resistance area above 1.0950 and this is keeping USDCHF fairly tight too

USDCAD has chewed through 1.3400 bids on firmer oil price but ran into demand at 1.3385 as the latter capped out while AUDUSD has found good demand at 0.6980 again but still can't get above 0.7050.

NZDUSD is still finding 0.6400 a step too far but with good demand at 0.6360 once again.

Fed's Dudley and US ADP jobs change coming up then Canadian GDP to keep things ticking over nicely