Forex news from the European morning session 4 Feb

News:

  • ECB's Draghi says global forces are holding down inflation
  • ECB says expected path of inflation in 2016 is now "significantly lower"
  • Out come the shears in latest European Commission economic forecasts - Inflation slashed to 0.5% vs 1.0% prior
  • Japan's Iwata says it's possible for BOJ to lower rates to around -2.0%
  • China's SAFE expects a large amount of foreign inflows in 2016
  • Venezuela had a good discussion with Qatar
  • ECB's Knot sees moderate Eurozone credit growth
  • EU's Moscovici says Spain has to respect deficit reduction and deadlines
  • Fed's Rosengreen wants higher capital requirements in US bank stress tests
  • Bundesbank's Buch says clear separation of ECB responsibilities required
  • Preview: Why should we expect anything of note today from the MPC?
  • Greek bank ELA cap lowered to €71.5bln
  • Why is the euro rallying?
  • Chinese equity markets close higher 4 Feb
  • AUDNZD technical analysis: NAB looking for the positives
  • Nikkei 225 closes down -0.85% at 17,044.99
  • Retail sales are going backwards in Europe

Data:

  • UK Halifax house price index Jan mm +1.7% vs +0.1 exp
  • Germany Markit construction PMI 57.9 VS 55.5 prev
  • Switzerland SECO consumer confidence Jan -14 vs -15 exp

People of the world, join hands. Get on the sell train, sell train.

Yes folks, it's been another soggy day at the office for the greenback.

Euro demand was kicked into gear early doors by European equities paring gains and we saw EURUSD back up through 1.1100 and eventually post highs of 1.1192 as USD selling accelerated.

That sentiment kicked USDJPY down to 117.34 with USDCAD down to 1.3647 despite oil remaining on back foot. USDCHF has also found itself on the back foot to 0.9987 but supported on the way into 1.0000 with EURCHF posting new 1 year highs of 1.1200. SNB presence cited again.

Cable has also needed little encouragement despite the shadow of MPC announcements and BOE Inflation Report to come at 12.00 GMT with Carney presser at 12.30 GMT. We've had a move up through 1.4600 again to post 1.4665 before running into fresh selling. The early EURGBP demand had helped to cap previously and then again as euro-love prevailed. That pair found support into 0.7577 and supply into 0.7660.

AUDUSD and NZDUSD have also felt the love and made steady gains albeit caught up in the cross currency crossfire.

Waiting on BOE MPC now but with focus definitely on tomorrow's US NFPs.