Forex news from the European morning session 10 September

News:

  • Japan's Yamamoto says 30 October BOJ meeting is a good opportunity for more easing
  • PBOC advisor says there will be no excessive yuan depreciation if economy stabilises - Livesquawk
  • Bank of England preview: The only BOE trade is short GBP isn't it?
  • Preview: MPC hawks likely to have their wings clipped by external concerns
  • ECB's Liikanen says bond purchases will be extended if needed
  • ECB wants to add Dutch MBS to the QE shopping list
  • Germany's Gabriel says economy is on a solid growth path
  • German construction activity likely to pick up in H2 2015
  • Offshore spot yuan set for biggest daily gain on record
  • ECB is considering stress tests for smaller banks in 2016
  • It's Daniel O'Donnell time as Irish growth jumps
  • Reuters poll sees RBNZ cutting interest rates again in October
  • Saudi Arabian oil output down 100k bpd in August
  • Option expiries 10am NY cut today 10 September

Data:

  • France NFPs Q2 final QQ +0.2% vs +0.1% exp
  • France industrial production July mm -0.8% vs +0.2% exp
  • UK Halifax house price index August mm +2.7% vs +0.5% exp
  • China vehicle sales August yy -3.0% vs -7.1% prev
  • Nikkei 225 closes down -2.51% at 18,299.62

Early moves in the yen on Yamamoto comments provided a spark and we've seen the euro retreat with the pound undecided into the BOE announcement

Further easing talk from Abe advisor Yamamoto gave Yen pairs a push higher and we saw USDJPY rise to 120.90 from 120.40 and since moved on to 121,16 having failed to retreat. EURJPY has also seen a rally to 135.65 from 135.00 despite a weaker tone to the euro overall.

EURUSD has fallen to 1,1172 from 1.1270 on not a lot dragging EURGBP to 0.7264 from 0.7305 which has also put a bid under cable at 1.5340 after having a wobble early doors ahead of the BOE. The subsequent rally has failed around 1.5400 again and we remain delicately poised

The Aussie $ has had a good morning helped by AUDNZD buying and yuan appreciation. Demand below 0.7000 has platformed a strong rally to 0.7094 so far with NZDUSD trading around 0.6300 having seen a post-RBNZ fall to 0.6255.

USDCAD ran into demand at 1.3200 and has bounced to 1.3222 just shy of earlier 1.3525 highs

Enough going on to create a few pips as we now wait on the BOE