Forex news from the European morning session 16 Oct
News:
- BOE's Forbes says rate needs to rise sooner rather than later
- Italy's Renzi does not expect EU to reject 2016 Budget
- BOJ's Kuroda says they will continue easing until 2% inflation is stable
- Turkey shoots down unidentified aircraft in its airspace near Syrian border - Livesquawk
- China still has big downside pressure on the economy
- UK treasury official sees "sound evidence base" for admitting yuan to IMF SDR basket
- Japan's Amari says domestic capex is clearly weak
- RBNZ Q3 sectoral factor model inflation gauge rises to +1.5%
- China sells net 761.3bln yuan in Sept
- Loonie in focus as Canada heads to the polling booths on Monday
- Option expiries 10am NY cut today 16 Oct
Data:
- Notable option expiries coming up next week 19-23 Oct
- September 2015 Eurozone HICP final -0.1% vs -0.1% exp y/y
- Eurozone trade balance Aug mm SA +€19.8 bln vs +22.1bln exp
- Italy trade balance Aug EUR +1.85bln vs +8.069bln prev
- Nikkei closes up +1.08% at 18,291.80
It's been a quieter session today but not one without opportunity
The euro has been on the back foot from the off after EURUSD failed to get back above 1.1400 and European equities opened firmer again
We've been down to 1.1334 but EURGBP ran into demand around 0.7345 which then dragged cable down to 1.5443 from 1.5483.
In the meantime USDJPY had edged its way back up to 119.25 from 118.90 and USDCAD journeyed up to 1.2910 from 1.2870 wiping its feet at 1.2900
USDCHF had a look above 0.9555 from 0.9510 but gains were tempered by offers on the EURCHF rally from 1.0800
AUDUSD and NZD both started brightly enough but they too gave in to the USD demand and both have ended up lower at 0.7271 and 0.6784 from 0.7303 and 0.6830
Attention now turns to the US data later to provide some further impetus
