Forex news from the European morning session 23 Feb

News:

  • BOE's Weale says recent fall in GBP will have welcome impact of adding to inflation
  • BOE's Carney says he's not making judgement about outcome of EU referendum
  • More from Carney: Considerable room available if more economic stimulus required
  • BOE's Shafik believes next interest rate move will be up
  • BOE's Weale sees upside risks to inflation after one year
  • Carney says BOE has been engaged in contingency plans for Brexit
  • Brexit will put jobs at risk say UK business bosses
  • China's commercial banks sold $54.4bln in Jan forex market vs $89.4bln prev
  • Greece says EU is ready to resume bailout review in Athens
  • Euro nudges under 1.1000 as 200 dma becomes resistance
  • Option expiries 10am NY cut today 23 Feb
  • Nikkei closes down -0.37% at 16,052.05
  • Germany IFO business climate Feb 105.7 vs 106.8 exp
  • Germany Q4 GDP final qq SA +0.3% vs +0.3% exp
  • France manufacturing confidence Feb 103 vs 102 exp

Focus was all set on the pound after yesterday's large falls but even Carney & Co couldn't shake it out the hangover state in which it has largely remained.

GBPUSD did indeed have an early look below 1.4100 again but with European equity markets turning higher we soon saw the euro sliding lower and with EURGBP break down below 0.7800 saw cable at 1.4135 before running into fresh supply.

Carney and his colleagues gave the pound another wobble when they unanimously agreed that the recent weakness in the pound had positive impact on inflation and much of the economy.

Meanwhile EURUSD was posting 1.0993 from 1.1050 and EURJPY breaking down through strong barrier option support at 123.50 which in turn capped the USDJPY gains above 112.10 from lows of 111.88.

Yep, it's all related right now with each currency having its own agenda which means that AUDUSD has risen on EURAUD selling and even EURCHF has taken its foot off the brake pedal (or rather the SNB has) to stage a fall of its own to 1 month lows of 1.0928.

Oil has had a good session and that's meant some CAD demand sending USDCAD down to 1.3707 back above 1.3740 but down again to 1.3716 as I type.

FOMC members Kashkari and Fischer up at 13.30 GMT then US house data along with CB consumer confidence will be the next areas of focus.