Forex news from the European morning session 28 Oct

News:

  • ECB's Hansson says there is "no convincing reason" for further policy action in December
  • ECB's Rimsevics says QE hasn't fixed economic problems
  • ECB Risevics sees no need to act now on expanding stimulus
  • ECB's Visco says they will use all instruments for proper monetary expansion
  • ECB's Praet says they have the tools to ensure price stability
  • More from Praet: ECB to re-examine toolbox at December meeting
  • Sweden's Riksbank leaves key rate unchanged at -0.35% but expands QE
  • HKMA sells another HK$2.9bln to maintain trading band 28 Oct
  • Volkswagen announces Q3 loss of €1.673bln after tax
  • Fitch says ECB TLTROs are failing to provide the intended stimulus
  • BOE's Salmon says volatility could make it harder for companies to raise funds on bond markets
  • China finance ministry will re-open 10 year bond issue
  • More responses to the Australian CPI today - Westpac says RBA will stay on hold
  • US MBA 30-year mortgage rate rises 3bps to 3.98% in w/e 23 Oct
  • Option expiries 10am NY cut today 28 Oct

Data:

  • Germany GFK consumer confidence Nov 9.4 as exp
  • French consumer confidence Oct 96 vs 97 exp
  • Italy consumer confidence index Oct 116.9 vs 112.2 exp
  • Nikkei 225 closes up +0.67% at 18,903.12

Plenty of ECB rhetoric this morning providing support for and against further QE in December with the net result being some euro demand as traders prepare for the FOMC later

EURUSD, like all pairs, spent the first part of the session in Snoozeville but caught a bid and has chewed its way from 1.1035 to 1.1076 so far after finding support again into 1.1030 following a retreat from 1.1055 initially

EURGBP has needed little excuse to nudge higher from 0.7205 and has taken out decent offers/res into 0.7230 to post 0.7244 so far while EURJPY has shaken off a wobbly start to bounce back to test 133.30 from 132.95

USDJPY has largely been on the back foot from 120.50 but has found demand all the way on EURJPY demand but the EURGBP rally has put the mockers on any GBPUSD rally and we've been down to 1.8284 as I type

USDCAD has also been on the backfoot as oil prices firm and we've seen 1.3220 demand tested from 1.3265 while AUDUSD has been crawling along around 0.7125 after its post-CPI tumble in Asia from 0.7180

NZDUSD has similarly had the morning off again around 0.6720

All eyes on the FOMC then but we'll have a bit more opportunity as traders/institutions try to second guess the outcome