Forex news from the European morning session 8 January 2015
News:
- US Dollar Index continues its journey north to 2005 highs
- Armed men reported to have been sighted near the defence ministry in Paris – Livesquawk
- Greece will get continued funding on assumed new Troika program says ECB
- Bank of England MPC keeps interest rate unchanged at 0.5%
- UK review body says there is a “strong case” for abandoning CPI as headline inflation measurement
- UK firms set to spend big on innovation in 2015
- Cable continues to slide and posts new 18-month lows
- There’s plenty of unemployed people in Greece who will have their say at the elections
Data:
- German factory orders Nov mm -2.4% vs -0.8% exp
- November 2014 eurozone PPI -0.3% vs -0.1% exp m/m
- Eurozone retail sales Nov mm +0.6% vs +0.2% exp
- UK Halifax house prices mm Dec +0.9% vs +0.3% exp
- December 2014 Eurozone consumer confidence final -10.9 vs -10.9 exp
- Nikkei 225 closes up +1.67% at 17,167.10
It’s been another morning of greenback grabbing but not without its peaks and troughs along the way
USDJPY had a bid around 119.70 despite the Nikkei fading from its highs and we then ran up to test 120.00 before retreating back to from whence we came and similalry yen pairs ran up and down accordingly
EURUSD had a quiet start around 1.1825 but then the slide began on weaker data and the 1.1800 barrier option popped to open up the path lower to 1.1754 so far. GBPUSD has also felt the USD force and election-year jitters have once again added to the bearish sentiment to take cable down through 1.5050 to trigger stops with a low post of 1.5034. EURGBP had a look at 0.7855-60 on the softer pound showing but then the euro pressure forced the pair lower again to test 0.7800 in what has been topsy-turvey time of late
USDCHF needed no encouragement to trade higher as EURUSD fell albeit with EURCHF still soggy at 1.2008 but SNB-backed of course. USDCHF baulked at 1.0200 but then chewed through to 1.0218
USDCAD is still supported below 1.1800 but struggling to break much higher despite falling oil prices again while AUDUSD has held its own above 0.8100 on cross demand but NZDUSD gave up on is own cross-based gains above 0.7800 to fall back below 0.7780
Expect more of these jittery markets as the day continues with eyes drifting toward tomorrow’s NFPs
