Forex news from the European morning session 12 Oct
News:
- Kuwait says that 2016 global economic growth will help oil prices
- OPEC cuts 2016 global oil demand forecast by 40k
- HSBC sees BOE hiking rates by 0.5% in 2016
- New BOE MPC member up before UK lawmakers tomorrow
- EIB could recall loans made to Volkswagen
- RBNZ's Wheeler to make a speech on Wednesday
- Central bank heads all lined up to share their wisdom today
- US NABE survey shows majority still expect Fed rate hike by year-end
- One thing is for certain, nearly everyone has had enough of Fed uncertainty
- EURGBP demand once again caps cable
EURUSD starts the week on the front foot as 1.1400 gets tested
Option expiries 10am NY cut today 12 Oct
Data:
- Portugal HICP Sept mm +0.7% vs +0.4% exp
- France current account balance Aug +€0.2bln
It's been a steady start to the week which has seen euro demand once again dominating the landscape as risk appetite/Fed indecision continues
Early demand in EURUSD above 1.1360 in Asia carried over and with EURJPY camped above 136.50 we saw highs of 1.1397 with EURGBP finding good support at 0.7400
That support gave a top to cable at 1.5367 after early gains through 1.5350 while USDJPY continues to trade in a tight range pinned between 120.00-30
AUDUSD and USDCAD both felt the impact of firmer gold and oil prices and we've seen 0.7369 from 0.7325 and 1.2900 from 1.2920 only to bounce back to 1.2935 as I type
NZDUSD also continued its rise to 0.6735 only to fall back as traders took some profit off the table
US and Canadian hols today but a few talking heads lined up to provide some potential impact
