Forex news from the European morning session 10 Nov

News:

  • Nothing has been decided on interest rates says Liikanen
  • China's XI says they will actively and steadily expand outbound investment
  • BUBA's Weidmann says he's concerned about monetary policy being too loose for too long
  • IMF's Lagarde says global economic outlook is fragile and uneven
  • ECB facing 3 law suits in German courts over QE
  • Sweden's Riksbank repeats it's ready to act if SEK appreciates faster than expected
  • Eurozone aiming to make payment to Greece next week says Schaeuble France's Macron sees economy growing between +1.1 and +1.2% in 2015
  • ECB's Nouy says non-performing loans are affecting banks ability to fund the economy
  • RBI's Rajan says India is a recovering economy
  • Eurozone growth is strengthening says ECB's Liikanen
  • EU's Tusk says he has now received reform requests from UK PM Cameron
  • UK's Cameron: We're entering the formal phase of EU reform negotiations
  • UK's Fallon says there is a need to be clear that EU reforms are legally binding
  • OPEC 's Badri says most of the market's oversupply caused by non-Opec sources
  • Cable finds support as EURGBP feels the euro heat
  • Three reasons to sell GBP/USD - Deutsche Bank
  • Option expiries 10am NY cut today 10 Nov

Data:

  • France industrial production Sept mm +0.1% vs -0.4% exp
  • Italy industrial production Sept mm +0.2% vs +0.6% exp
  • Switzerland unemployment unadj rate Oct 3.3% as exp
  • October 2015 US NFIB small business optimism index 96.1 vs 96.4 exp
  • Nikkei 225 closes up +0.15% at 19,671.26

It's been a session just a little more exciting than watching paint dry, or Ryan wash his hair, but we've seen the euro under pressure again as focus remains on further ECB easing next month

EURUSD had brief look above 1.0750 early on which lent itself to EURGBP posting 0.7128 but the love was soon waning as equities opened a little firmer and, despite hawkish talk from Weidmann and Liikanen the market started to back additional measures from Draghi & Co next week

EURUSD has fallen back to 1.0722 so far with EURGBP testing 0.7100 which in turn gave support to GBPUSD up to 1.5117 before running out of steam again

USDJPY has been in a tight range with early support around 123.20 ahead of large option expiries at 123.00 but rallies tempered by EURJPY supply while USDCHF has had the morning off with EURCHF drifting lower to test 1.0770

USDCAD similarly has been tightly bound between 1.3265-85 while AUDUSD continues to be pinned around 0.7050 with NZDUSD likewise around 0.6545 seemingly supported by large option expiries at 0.6510 today

It's all been a bit of a drag but let's see if our friends across the pond can shake it up a little