Forex trading headlines from the European morning session 4 October
- BOJ’s Kuroda says current monetary policy sufficient for targets. More from the presser here
- EZ PPI august m/m +0.1% vs 0.0% exp +0.2% prev revised down from +0.3%
- German PPI august y/y -0.5% vs -0.1% exp 0.0% prev revised down from +0.5%
- Bank of Spain’s Linde says bad loads will continue rising in the short term
- Portugal’s PM Coelho says govt committed to avoiding second bailout
- ECB’s Costa says sustainable public finances needed for growth
- Nikkei closes down 0.94% at 14,024.31
Pressure on the pound has been the feature of the morning with recent GBP longs getting easily squeezed with stops on cable being triggered all the way down to 1.6045 so far.
Yesterday’s softer feel to the pair above 1.6200 was given more kudos early on after the lack of any real rally and we were soon stomping down through 1.6150 and then 1.6100. Pound pairs came in for similar punishment with EURGBP happy to continue its journey higher but GBPAUD and GBPJPY were also cited as targets.Nothing but a reality check/correction really but’s it’s been enough to have substantial impact in thin/fragile markets, and continued throughout the morning.
USDJPY had another look below 97.00 but ran into buyers again and this has added to a general demand for the greenback with USDCHF heading up to test resistance at 0.9030.
Even the mighty EURUSD has felt the heat today and, begrudgingly, dropped to 1.3590 so far, but more bids close by as ever lately. And the aussie $ has also had another crack at the title but AUDUSD found offers at 0.9450 one step too far.
No NFP’s today but hey, there’s plenty enough going on to round the week off without them.
