Forex news from the European morning session 1 Oct

News:

  • "Mr Yen" Sakakibara says Tankan report doesn't suggest Japan is set for recession
  • SMBC Nikko says if BOJ don't ease next week they won't act on 30 Oct
  • PIMCO sees a 7% devaluation in the yuan as Chinese economy slows
  • Eurogroup will discuss low interest rate environment
  • Glencore says that bank facility extensions are not reliant on credit ratings
  • ONS says UK Q2 labour costs are rising the fastest pace since 2012
  • Troika to become Dvoika unless EU lowers debt - paper
  • Think you're having a bad day? How about waking up to this?
  • Love for the loonie as oil price perks up
  • Option expiries 10am NY cut today 1 Oct
  • Notable option expiries coming up over the next few days

Data:

  • September 2015 UK Markit CIPS manufacturing PMI 51.5 vs 51.3 exp
  • Eurozone Markit mftg PMI Sept final 52.0 as exp
  • Germany Markit mftg PMI Sept 52.3 vs 52.5 exp
  • France Markit mftg PMI Sept 50.6 vs 50.4 exp
  • Italy Markit mftg PMI Sept 52.7 vs 53.4 exp
  • Spain Markit mftg PMI Sept 51.7 vs 52.9 exp
  • Greece Markit mftg PMI Sept 43.3 vs 39.1 prev
  • Ireland jobless claims as of Sept SA 337.3k vs 341.0k prev
  • Switzerland mftg PMI Sept 49.5 vs 51.8 exp
  • Switzerland retail sales yy real Aug -0.3% vs +0.1% prev
  • Australian commodity price index Sept yy -21.3% vs -21.4% prev
  • Japan vehicle sales Sept -3.0% vs +2.3% prev
  • Nikkei closes up +1.92% at 17,722.42

Phew! Another session of data/headers requiring the ice bucket for my fingers but price wise it's been far steadier

Firmer equity markets to start with along with softer mftg PMIs saw the euro under a little pressure with EURUSD down to 1.1135, EURGBP to 0.7356 and EURJPY down to 133.85 but since then we've had equities dipping again and given euro some relief

Not against the yen though as talk of BOJ not wanting to ease further has added to JPY buying and seen EURJPY down to 133.44 with USDJPY giving up early gains above 120.20 to post 119.61

The pound has had a mixed time of it with good two-way business still while the loonie has had another good day at the office as oil prices firm again

Similarly there's been more love for AUDUSD to post 0.7085 before running into more supply while NZDUSD has also given up some of its gains after failing to breach 0.6450

Focus remains on the equity markets but now with tomorrow's NFPs casting its own shadow. US ISM mftg PMI coming up along after initial jobless claims