Forex news from the European morning trading session 20 Oct
News:
- Roesengren says conditions right for Fed to end QE after Oct meeting
- Don’t expect government to resort to FX manipulation to correct yen weakening says Japan’s coalition party Komeito
- Rapid moves in currency undesirable says BOJ’s Umemori
- China’s GDP to drop dramatically over the next 10 years
- PBOC says China will promote interest rate liberalization
- Barroso says UK exit from EU would leave them with zero influence
- BIS warns of the perils of cheap money
- UK SME’s still tightening their belts says BOE lending report
- Central bank of Russia raises rouble corridor by 5 kopecks
- BOJ quarterly report keeps economic assessment unchanged for 8 out of 9 regions
Data:
- German PPI Sept mm 0.0% vs 0.0% exp
- Eurozone current account Aug SA EUR +18.9bln vs +21.6bln prev
- Italian industrial orders Aug mm +1.5% vs +0.2% exp
- CML UK mortgage lending -1% in September
- Japan’s leading index Aug final 104.4 vs 104.0
- Japanese nationwide dept store sales Sep yy -0.7% vs -0.3% prev
- Nikkei closes up +3.98% at 15,111.23
It’s been a fairly subdued start to the week, certainly compared to the flows we were seeing last week and it’s the greenback’s turn to go on the retreat
USDJPY had an early lift to 107.39 on a a firmer Nikkei into the close but since then it’s drifted back below 107.00 while USDCHF has once again failed to get above 0.9480 in Asia and spent most of the session on the back foot as EURCHF dropped to 1.2060 and EURUSD edged its way to 1.2779 highs
GBPUSD had an early wobble to 1.6093 but then made a steady advance to 1.6149 before being capped by offers at 1.6150 and bids on EURGBP at 0.7910 after its earlier look above 0.7930.
USDCAD drifted down to test bids at 1.1250 while AUDUSD and NZDUSD have largely had the morning off.
Not exactly an inspiring start to the week but we’ve had opportunity, albeit almost in slo-mo, and can expect better volatility to come.
