Forex news from the European morning session 12 Nov

News:

  • ECB's Draghi says they will re-examine monetary policy accommodation at December meeting
  • Draghi says ECB discussing whether ELA should remain a national task
  • More from Draghi: Greek banks probably won't need full €25bln aid
  • Draghi says QE will be re-visited if downside risks materialize
  • Draghi says swifter Greek bank recapitalisation would end capital controls sooner
  • European recovery is lagging the US says Draghi
  • Deadly Draghi does it again - Euro dives but something doesn't add up
  • ECB's Honohan says QE makes it clear they are determined to get inflation back up to 2%
  • Saudi's pump an extra 50k bpd in October
  • Option expiries cast a shadow over USDCAD
  • Option expiries 10am NY cut today 12 Nov

Data:

  • Germany CPI Oct final mm +0.0% as per flash
  • China M2 money supply rises 13.5% yy in Oct vs 13.2% exp
  • Nikkei 225 closes up 0.03% at 19,697.77

It's been all about Super Mario this morning in what has been a continual torrent of rhetoric

The first time he popped he talked about weakening inflation and that was enough to see a rapid fall in the euro with EURUSD dropping to 1.0692 from 1.0740, EURGBP down to 0.7041 from 0.7075 and EURJPY to 131.60 from 132.10 to name but three euro pairs. The impact was felt across the board

GBPUSD had earlier seen a steady decline from 1.5220 to 1.5172 on nothing of note but bids came back in as EURGBP tumbled although sellers have been keen to sell into 1.5200 since

USDJPY had a brief look above 123.00 but was capped by EURJPY selling while USDCHF also felt the pressure as EURCHF fell to 1.0755 from 1.0806

USDCAD has failed into 1.3280-1.3300 again as option plays cast a shadow while AUDUSD ran into 0.7150 sellers down to 0.7130 after a decent rally in Asia after good jobs data. NZDUSD traded tightly too between 0.6535-55

US Fed heads will dominate the headlines later so we can expect more fun n games