Forex news from the European session 25 Sept

News:

  • BOJ's Kuroda says Japanese CPI data, ex energy, is positive
  • BOE FPC report says financial stability outlook remains challenging
  • BOE hike forecasts may have been pushed out too far says ex-MPC member
  • Economy continuing on a gradual recovery trend says Abe
  • Tsipras says Greece will have exited crisis in 4 years
  • PBOC intervenes to support the yuan
  • PBOC vows to keep yuan stable
  • China's Sheng says economic growth still in reasonable range
  • HKMA intervenes again to keep HK$ in trading band
  • The MPC will be rubbing their hands as the UK gets another wages boost
  • Option expiries 10am NY cut today 25 Sept

Data:

  • Eurozone M3 money supply Aug yy 4.8% vs 5.3% exp
  • Spain PPI August mm -1.7% vs +0.1% prev
  • France consumer confidence Sept 97 vs 94 exp
  • Nikkei 225 closes up 1.76% at 17,880.51

Another busy session as the week draws to a close and the European markets havebeen digesting Yellen's comments

The euro was on the back foot from the off as equity markets improved and we saw EURUSD fall from 1.1175 through 1.1150 support to post 1.1116. EURGBP was dragged down to 0.7301 from 0.7340 giving cable a push higher to 1.5261 from 1.5225 but it was all change as good euro demand in the dips has provided a solid base so far

EURUSD has been back up to 1.1177, EURGBP 0.7344 and that has capped cable to push it down to 1.5211 ahead of strong support/demand at 1.5200 which has now held well in the past 24 hours

The greenback got some early love on initial reaction to Yellen and that helped push USDJPY through 120.50 then 121.00 but ran out of steam and retreated to 120.84. USDCHF also had an early rally to post 0.9845 but it too ran into good supply as the market decided enough was enough on the USD demand and we've been back to test 0.9750 as EURCHF once again stalls around 1.0960

USDCAD has also enjoyed some two-way business between 1.3300-1.3350 while AUDUSD rallied to 0.7043 from 0.7000 only to fall back again as supply into 0.7050 sent longs running for cover. NZDUSD also failed into 0.6350 and fell back to 0.6300 support only to bounce back to 0.6330

Plenty going on then and we have the US Q3 GDP final reading on the horizon. Expect more thrills n spills before the week is out