Forex news from the European morning session 18 Feb

News:

  • Iraq will support any decision to prop up oil prices
  • IMF see oil prices staying low for a long time on basis of surplus
  • BOJ's Ishida says negative rates won't have much effect at this time
  • More from Kuroda: Wants to raise topic of global market instability at G20 meeting
  • Japan's Ishihara says Chinese and US economies to be on G20 meeting agenda
  • Abe is monitoring financial markets and the global economy
  • BOE's Cunliffe sees no reason recently to change stance on interest rates
  • Pound extends gains on EU summit deal hopes
  • Dijsselbloem - Europe is moving out of the financial crisis
  • OECD unsheathe their growth axe
  • Nomura sticks to its USDJPY year end target of 130.00
  • South Korea's Yoo doesn't see current FX volatility becoming a major shock
  • EU summit today but will it give UK's Cameron what he needs?
  • PBOC switches to daily open-market operations
  • Chinese equity markets close lower 18 Feb
  • Nikkei closes up +2.28% at 16,196.80
  • Option expiries 10am NY cut today 18 Feb

Data:

  • France CPI Jan mm final -1.0% as expected
  • ECB Eurozone current account Dec SA +€25.5bln vs +€26.9bln prev
  • Spain trade balance Dec -€1.793bln vs -€1.850bln prev
  • Switzerland trade balance Jan CHF +3.51bln vs +2.54bln prev

A busy morning has seen gains for the pound and oil while the euro has suffered on equity gains after a wobbly start.

European equities took their lead from China and late Nikkei fade but were soon back on track and that put a cap on EURUSD above 1.1135 to post 1.1105 as I type with EURGBP falling back through 0.7750 to post 0.7727 so far.

It's all helping to put a bid under the pound along with positive noises from Brussels on a deal for UK. Cable has ploughed through offers into 1.4350 to post 1.4377 from 1.4257 lows first thing.

Oil has risen as hopes rise of production cap/freeze/cuts and that in turn has capped USDCAD gains while the equity rally has seen USDJPY hold 113.60 as safe-haven yen demand fades after earlier falls through 114.00

USDCHF and EURCHF have held firm despite/because of the euro wobble with the SNB always in the frame.

AUDUSD and NZD have also been mostly underpinned by firmer commodity prices.

Good opportunities and more to come with the Philly Fed indices out later to throw some fuel on to proceedings.