Forex news from the European morning session 9 Nov

News:

  • OECD says China's fiscal stimulus not sustainable in the long term
  • Qatar says the drop in oil and gas prices could lead to shortage in supplies
  • UAE minister says oil prices will be heading higher next year
  • Aung San Suu Kyi's NLD expected to sweep into government in Myanmar
  • PBOC to introduce direct yuan-swiss franc trading tomorrow
  • BOE's Carney looking at compensation regimes in forex, bond and commodity markets
  • UK's Cameron says he will vote to stay in EU if demands are met
  • UK's Osborne puts the heat on government departments to make an average of 30% cuts
  • Catalan regional parliament back a declaration to split from Spain
  • Tata Steel warns its suppliers to slash prices by 30%
  • Trading Ideas - European session 9 Nov
  • Option expiries 10am NY cut today 9 Nov

Data:

  • Germany trade balance Sept +€22.9 bln vs +€20.0bln exp
  • Eurozone Sentix investor confidence Nov 15.1 vs 13.1 exp
  • Bank of France business sentiment Oct 99 vs 98 exp
  • Nikkei 225 closes up 1.96% at 19,642.74

It's been an understanbly cautious start to the week after Friday's fun and games but one that's seen some good two-way business as US$ sellers return to the fray

The euro found some early demand as equities wobbled as markets opened but lost a little flavour with EURUSD capping at 1,0790 and EURGBP at 0.7154 but EURJPY has remained above 133.00 as USDJPY finds dip-demand after a rally to 123.60

The pound has been a decent winner with demand most of the morning having held its support lines well on Friday. Cable has been up to 1.5116 after finding good early support at 1.5060 and this was accelerated by EURGBP capping around 0,7150 to return to 0.7135

USDCHF and EURCHF both saw a quick dip after the PBOC announced yuan-chf trading to commence tomorrow with the former dropping to 0.9998 from 1.0035b and latter to 1.0773 from 1.0810 before bouncing back to 1.0030 and 1.0817

USDCAD saw another failure above 1.3300 in Asia and we've seen further decline from 1.3280 to 1.3253.

AUDUSD has mostly had the morning off trading between 0.7045-70 while NZDUSD has also failed to throw a 6 to start and has been tightly bound around 0.6550

Canadian housing starts the only data highlight to come but let's see what appetite the US has for its own currency after Friday's demand