Forex news from the European morning session 26 Oct

News:

  • Japan's Hamada says no need for BOJ to ease while market expectations for Fed hike keeps yen weak
  • Bundesbank says Germany lost some growth momentum in Q3
  • October 2015 UK CBI industrial trends orders -18 vs -9 exp
  • Profit taking ahead of the FOMC may give false hope to EURUSD longs
  • PBOC's Yi says rate liberalisation isn't a one off move
  • China: Deutsch Boerse poised to sign a co-operation deal with Chinese stock markets
  • Japan Post Holdings sets IPO price at JPY 1400
  • September 2015 UK BBA mortgage approvals 44,489 vs 47,400 exp
  • Magnitude 7.7 earthquake hits Northern Pakistan
  • IFO says German auto industry appears to be resilient to VW scandal
  • German IFO business climate Oct 108.2 vs 107.80 exp
  • Nikkei 225 closes up +0.65% at 18,947.12

It's been a steady start to the week after the post-ECB fun and games as the FOMC starts to cast its shadow

USDJPY was the first to make any real move when Hamada comments broke and we saw 120.87 in a rush from 121.08 after dribbling lower in Asia as the Nikkei paired its early gains

The drop prompted general selling in yen pairs which in turn capped the core pairs who had been trying to make a little headway higher as USD selling became the theme of the early morning session

EURUSD had found support around 1.1000 in Asia and was nudging up through 1.1030 but soggy IFO data produced a few sellers again and we've treading water since. EURGBP also joined in the general euro-neg sentiment and has posted 0.7180 from 0.7200 which in turn has provided additional support to cable which had already found good demand into 1.5300

USDCHF and EURCHF have both made steady progress north to 0.9820 and 1.0827 from 0.9780 and 1.0780 suggesting that the SNB might be keeping a hand on the tiller again

USDCAD has had the morning off around 1.3140 while AUDUSD has also been tightly bound but generally enjoying some cross-pair support. NZDUSD similarly has gone nowhere fast

US new home sales data at 14.00 GMT the only data highlight left now

A reminder to our friends across the pond that UK and European clocks went back 1 hour at the weekend. UK is now on GMT