Forex trading headlines from the European morning session 22 November
- German IFO business climate nov 109.3 vs 107.7 exp vs 107.4 prev
- Draghi says EZ situation has improved greatly, but challenges remain
- ECB’s Praet says EZ debt overhang has created deflation risks
- ECB’s Nowotny sees no perspective of deflation
- Japan govt’s monthly report cuts export assessments for third month in a row
- Japan’s Amari says leading indicators suggest that exports will pick up
- BOE’s Dale says UK economy has turned a corner
- ECB’s Nowotny says current low interest rates are extreme
- Italian PM Letta says economy remains vulnerable as long as Italian 10s over 3%
- ECB’s Noyer says EU banking union is a priority
- German Q3 GDP q/q +0.3% as exp/prev
- Italian retail sales sept m/m -0.3% vs 0.0% prev
- Germany cuts gold reserves for second time five months
- Nikkei closes up 0.1% at 15,381.72
- Shanghai comp index closes down 0.43% at 2196.38
We’ve had another barrage of jaw-boning this morning but it was the German IFO that had the biggest impact and sent the euro higher.
EURUSD had struggled to breach 1.3500 but remained supported in the dips due to EURJPY demand as the yen continued to weaken. Cue the IFO and we rallied quickly to 1.3527 and posted 4 year highs on EURJPY at 136.68. EURGBP had a quick look above 0.8350 from 0.8317 opening lows and EURAUD continued its rampant move to 1.4766.
USDJPY dipped briefly below 101.00 but then headed back to 101.25 after the latest Japanese govt monthly report expressed concerns over reduced exports. The pair has remained solid since and helped EURJPY post new highs of 136.95.
GBPUSD had a look at 1.6220 sell-interest but didn’t like it, and as EURGBP found a bid the pair needed little excuse to drop back below 1.6200 where it’s stayed since. GBPJPY though has continued its heady advance to 164.08.
The aussie $ failed on a rally back above 0.9200 and had another look at the 0.9150 support line only to bounce back to 0.9175 as I type.
USDCAD has moved higher again posting 1.0570 from lows of 1.0515. option expiries once again dominating the landscape but with the loonie joining the commodity currency-negative sentiment with gusto.
Another session that provided plenty of two-way opportunity but there’s many out there for whom the week-end can’t come fast enough.
