Forex news from the European morning session 27 Nov

News:

  • PBOC lowers 6-month MLF rate to 3.25% from 3.35%

  • China's equity markets feeling the heat of regulatory probe

  • Japan's Union Association to seek wage hikes around 2% in 2016 Spring talks

  • Euro Working Group has agreed on 2nd set of "milestones" for Greece
  • Is the SNB front running the ECB again?
  • Option expiries 10am NY cut today 27 Nov
  • Cable breaks lower as USD demand prevails
  • Key levels approach in GBPUSD - Big barrier, and sovereign interest noted at 1.5000

Data:

  • BOJ's national CPI Oct ex-fresh food and energy yy +1.2% as prev
  • November 2015 Eurozone economic sentiment 106.1 vs 105.9 exp
  • Q3 2015 UK GDP 1st revision 0.5% vs 0.5% exp q/q
  • UK Nationwide house price index Nov +0.1% vs+0.5% exp
  • Germany import price index Oct mm -0.3% vs -0.2% exp
  • Spain CPI November flash +0.3% vs +0.2% exp
  • France PPI Oct mm +0.2% vs +0.1% prev
  • Greece Q3 GDP final qq -0.9% vs -0.5% prev
  • Italy consumer confidence index Nov 118.4 vs 116.5 exp
  • Nikkei 225 closes down -0.3% at 19,883.94

It's been one-way traffic really all session as the greenback finds favour with month-end flows being cited, and in the aftermath of Chinese equity market falls

GBPUSD was the first to wobble falling back below 1.5100 to 1.5080 helped by EURGBP enjoying some usual month-end demand from 0.7030 to 0.7050 but then capped by offers

That helped tip the scales on EURUSD at 1.0638 helped by EURJPY selling through 130.00 as softer Asian equity markets had yen buyers back out in force. GBPJPY fell too adding to cable pressure to send it lower to 1.5053 only to get a small lift on better GDP backstories before turning back down to post 1.5031 so far

That early USDJPY pressure saw 122.31 from 122.60 only for it bounce back to 122.72 64 on the USD hoovering which also saw EURUSD fall to 1.0574

The SNB has been cited as making a decent intervention on USDCHF/EURCHF which pulled both pairs higher in a rush from 1.0260 to 1.0328 and 1.0860 to 1.0927 leaving traders believing that the ECB has a nasty surprise up its sleeve

USDCAD has continued its rally after once again finding demand into 1.3280 and has been up to 1.3349 on the USD-demand/lower oil price double whammy before running into sellers

AUDUSD and NZDUSD have both felt the force of greenback grabbing falling to 0.7198 from 0.7235 and 0.6570 to 0.6530

Expect trading liquidity to be thin as the day progresses with many US desks still out on Thanksgiving hols on splashing out on Black Friday

Caution advised ( on both!)