Forex news from the European morning session 12 Jan

News:

  • Explosion near Istanbul kills 10
  • OPEC may hold emergency meeting if oil prices drop below $30 per barrel
  • Non-Gulf delegates say there is nothing to suggest an early OPEC meeting
  • US Fed's Fischer says productivity growth will eventually recover
  • PBOC allows more central banks to trade onshore yuan
  • SNB's Maechler says global growth should help Swiss exporters
  • ECB's Villeroy says Eurozone economy is picking up
  • ECB's Villeroy says ultra low rates can lead to bubbles
  • BOJ's Kuroda says removing deflationary mind-set is not easy
  • BOJ's Kuroda says underlying trends in inflation have been steadily improving
  • USDCAD posts fresh 13-year highs in a volatile session
  • Cable hits fresh lows after weak UK production data
  • Option expiries 10 am NY cut 12 Jan

Data:

  • November 2015 UK industrial production -0.7% vs 0.0% exp m/m
  • Bank of France business sentiment Dec 99 as exp
  • China Dec vehicle sales +15.4% vs +20.0% prev
  • Japan economy watchers survey Dec current 48.7 vs 46.6 exp
  • Japan consumer confidence index Dec 42.7 vs 42.5 exp
  • Nikkei 225 closes down -2.71% at 17,218.96

Another lively session that has seen equities and oil in firmer mode but one that has seen the pound under renewed pressure accelerated by weaker UK production data

The Asian session had China in focus again and with equity markets closing in positive territory and the PBOC intervention to support the yuan European equity markets needed little encouragement to trader higher with the DAX leading the way.

Risk-on sentiment prevailed with oil feeling some love too and USD demand on most ccy pairs with USDJPY and USDCHF climbing to 117.85 and 1.0017 from 117.25 and 0.9970

EURUSD had an early look at 1.0900 but failed and has since been in retreat to test support at 1.0840 with the equity rises but the biggest loser has been the pound with GBPUSD falling to 1.4416 and EURGBP rising to 0.7530 from 1.4520 and 0.7478 prior to the UK data.

We've seen GBP falls across the board with GBPCAD a big loser to 2.0487 as firmer oil dragged USDCAD back down to 1.4200 from 13-year highs at 1.4270

AUDUSD and NZDUSD have seen some risk-on support in the dips but gains have been limited with rally sellers ready to jumpy back in.

Various comments from CB heads at the BOF event have had little impact but with more to come we should stay on high alert.