Forex news from the European morning session 13 Jan

News:

  • Chinese equity markets close lower 13 Jan
  • China to re-open an issue of 7-year bonds
  • China sets a crude oil price floor for fuel price adjustments
  • China to replace Secretary general of the cabinet
  • Russia says there is no reason to review risk with oil price at $35 per barrel
  • Iran hasn't received a request for an emergency OPEC meeting - Livesquawk
  • ECB's Praet says impact of oil price fall on inflation is not temporary
  • ECB's Villeroy says Eurozone rates are low because "that's what's needed"
  • Oil prices likely to continue falling says Russia's Siluanov
  • Germany's Schaeuble says government aiming for balanced 2016 budget, if possible
  • German industry body expects 2016 German GDP at almost 2%
  • Banks are failing to meet our expectations says ECB's Lautenschlaeger
  • Draghi says Greek waiver will be linked to good behaviour
  • Iran says US sailors "were in Iran's territorial waters and US should apologize"
  • Iran says issue of detained US sailors is "being resolved"
  • Spain's Rajoy says he aims to seek support of parliament by end-Jan
  • EURCHF tests 1.0900 then retreats but dip demand noted still
  • The dippers are back in USDJPY
  • Option expiries 10 am NY cut 13 Jan

Data:

  • November 2015 Eurozone industrial production -0.7% vs -0.3% exp
  • France CPI Dec mm +0.2% vs +0.1% exp
  • US MBA mortgage applications +21.3% vs -11.6% prior
  • Nikkei 225 closes up +2.88% at 17,715.63

Strong gains on the Nikkei led by calmer Chinese equity waters had seen yen pairs in demand in Asia but a 2% decline on the SCI into the close brought back some jitters.

USDJPY fell back from 118.35 to test 118.00 support dragging yen/core pairs down with it. European equity markets turned north in early trading which added downward pressure to the euro which saw EURUSD post 1.0806 and EURGBP 0.7483.

These markets though are still in blink-and-you-miss it mode and we saw EURGBP back up to 0.7525 in a rush as the DAX/others retreated and GBPUSD failed to hold above 1.4450. Cable has since been back to look at 1.4380 demand but EURUSD has also been on the back foot with equities still in positive territory. EURJPY has also fallen back into 127.80 support after failing above 128.00

Oil prices showed a firmer tone to start with but there has been much rhetoric from key talking heads and much of those gains have been pared giving USDCAD a lift up from 1.4190 after tumbling from 1.4280 only to run out of steam around 1.4230.

EURCHF has taken out the strong offers at 1.0900 and remains underpinned with the SNB still in the frame. That also has been reflected in USDCHF in a decent rally into 1.0100 but holding there for the moment

AUDUSD and NZDUSD both found themselves in two-way mode caught up in the yen and euro cross pair crossfire with demand in the dips but failing to breach 0.7050 and 0.6600 on the rallies.

Nothing of note on the data front from the US but these markets don't need data to have traders jumping on hot coals.