Forex news from the European session 17 Nov

News:

  • ECB's Praet says they will discuss whether there is a case for further action
  • PBOC says China should set up an interest rate corridor
  • Greece and creditors have reached agreement
  • More from Moscovici: Agreement has been reached between Greece and creditors
  • Russia says the downing of flight KGL 9268 was an act of terrorism
  • EU's Moscovici say they will reassess French budget when security costs are fully known
  • ECB's Lautenschlager says average Eurozone bank capital requirement now 10.1%
  • BOE's Bailey says PRA does not agree with paying whistle blowers
  • Earthquake measuring 6.7 hits Greece
  • Nikkei rises to 3month high at 19,726.01
  • AUDUSD enjoying some love after earlier falls
  • Pound finds some relief-rally on inflation data but sellers lurking still
  • Option expiries 10am NY cut today 17 Nov

Data:

  • UK CPI October mm +0.1% vs +0.1% exp
  • Germany Nov ZEW survey current situation 54.4 vs 55.2 exp
  • Italy September trade balance total €+2.186bln vs €+1.85bln prev
  • Nikkei 225 closes up +1.22% at 19,630.63

Nothing too much to glean from this morning's session but there's been plenty of opportunity for the intra-day traders nonetheless

Euro had a steady start near Asian lows but then we saw further dips as European equity markets opened firmer. EURUSD fell through good support at 1.0650 to post 1.0643 and that sent EURGBP down to 0.7010 and EURJPY to 131.20. Indifferent German ZEW had little impact.

GBPUSD found a bid on the EURGBP selling and we were back to 1.5185 from 1.5165 only to return back down there as EURGBP demand into 0.7000 prevailed. Then came UK inflation data and we were through good offers/res at 1.5200 only to run into more behind that at 1.5220. EURGBP went back to 0.7005 but once again found option related demand although rallies since have been minimal

USDJPY failed into 123.50 as the Nikkei faded a little into the close after posting 3 month highs and since then the pair has been pulled around by cross plays but mostly spending the session around 123.25

The Aussie $ came in for a kicking early doors with talk of a macro-fund behind the move buying GBPAUD and EURAUD but after lows of 0.7073 we've since rallied strongly to 0.7125 with option expiries at 0.7100 also at work

CHF pairs have made gains as the Paris-related safe-haven effect wanes and USDCHF has been up to post 1.0136, the highest level since the SNB removed the CHF cap and that has pulled EURCHF back up through 1.0800

NZDUSD remains vulnerable to the GDT auction currently under way while USDCAD has seen some good two-way business between 1.3300-40

US CPI the next data risk event at 13.30 GMT and this day has more to offer yet.