Forex news from the European morning session 21 Jan

News:

  • PBOC repeats its intention to provide ample liquidity over lunar new year
  • Chinese equity markets close on the back foot 21 Jan
  • PBOC confirms it added yuan 352.5 bln via MLF today 21 Jan
  • China's SAFE has not issued new measures to restrain forex trading
  • China is not falling off a cliff says India's Rajan
  • China's economic fundamentals are good
  • USA's Lew says China is in a long and difficult transition
  • Finland's Stubb says Europe faces tough times
  • Germany's Schaeuble says Merkel was right to insist IMF get involved in Greek bailouts
  • Greek PM Tsipras says he accepts other countries' demand for IMF to be in bailout talks
  • Can Draghi and the ECB inject some life into the euro?
  • Preview: Is the ECB event today likely to make any impact?
  • Japan Post Bank Co looking to BTFD
  • Pound pummelled again on renewed Brexit fears
  • Italy's Renzi says its banking sector is stronger than some think
  • Now is the time for the Italian banking system to change says Renzi
  • HSBC kick back their first BOE hike forecast
  • Option expiries 10am NY cut today 21 Jan

Data:

  • France manufacturing confidence Jan 102 vs 103 exp
  • Japan supermarket sales Dec yy 0.0% vs -1.0% prev

A session understandably contained but still fragile and volatile as the ECB casts its shadow

The euro has once again been at the behest of the equity markets and we've seen good two-way business on that fluctuation albeit in tight ranges around 1.0900 for EURUSD with large option expiries today also having their say.

The pound though has come in for another wave of selling as Brexit fears and on-going bearish sentiment continue to play out. GBPUSD failed to get back above 1.4200 and with 1.4150 giving way and EURGBP underpinned we've seen the pair fall through 1.4100-15 support in rapid time.

Elsewhere its been euro/oil/equity related that has seen USDJPY fall below 116.50 on weaker Nikkei but rebound strongly above 117.00 in a rush with BOJ intervention comments from yesterday casting a shadow.

USDCAD has been on the back foot after the BOC and despite soft oil has looked again at 1.4440 support while USDCHF remains perky as EURCHF demand persists.

AUD and NZD have both been caught in the cross-play crossfire but mostly under the cosh still.

ECB next up at 12.45 GMT with the presser at 13.30 GMT