Forex news from the European session 19 Oct
News:
- ECB's Nowotny says there may be a need for more expansive fiscal policy in the Eurozone
- Japan's Suga says they are not considering an economic stimulus package at the moment
- Spain's De Guindos says unemployment will drop at record pace in 2015
- BUBA's Nagel doesn't expect a dramatic slowdown in China
- BOJ Osaka branch manager says China has room for policy action
- Economic growth in central Japan to be roughly flat in Q4 - BOJ Nagoya
- BOJ keeps its assessment of 9 from 9 regions unchanged
- Option expiries 10am NY cut today 19 Oct
Data
- August 2015 Eurozone construction output -0.2% vs 1.0% prior m/m
- Nikkei closes down -0.88% at 18,131.23
It's been all about euro weakness this morning as attention turns to Thursday's ECB meeting and European equity markets turn positive
EURUSD had an early look 1.1375 from 1.1360 as European equity futures traded softer in line with Asian markets and that took EURGBP to 0.7365
But then ECB easing jitters and firming equities combined to send the euro lower with EURUSD breaking down through 1.1340 after USDCHF triggered buy-stops through 0.9550. That in turn sent EURGBP through key support at 0.7330 and we've since traded at 1.1309 and 0.7305
Cable at first found a cap around 1.5455 as EURGBP went north but the reversal then acceleration has seen a second and successful attempt through 1.5480 only to run into the larger offers at 1.5500-10
USDJPY started out on the back foot on a weaker Nikkei and fell from 119.40 to 119.21 but found decent support and since returned to test offers around 119.50
USDCAD has been tightly range-bound between 1.2910-30 as we wait on the results of the Canadian elections later while AUDUSD had one quick look above 0.7300 FROM 0.7275 but failed at the second time of asking and has retreated to 0.7278 as I type
NZDUSD has had the morning off between 0.6800 and 0.6815
We'll now wait on our friends across the pond to inject some more life into the day
