Forex news from the European session 23 Nov

News:

  • PBOC set to place bigger emphasis on interest and exchange rates
  • S&P sees China's GDP at 6% or more until at least 2018
  • ECB's Liikanen says risk of deflation still exists
  • ECB's Nouy says there is increasing evidence "every day" of misconduct by credit institutions
  • BOE's Kohn says there's a number of issues with UK housing market
  • EU considering extending sanctions on Russia for another 6 months
  • Brussels stays on highest alert as 16 terror suspects are arrested
  • Eurozone data shows why the ECB may skip additional QE in December
  • Barrier option defence of 1.0600 underpins EURUSD but rallies not convincing
  • How to Decide Which Trades to Take (and Which to Ignore)
  • Option expiries 10am NY cut today 23 Nov

Data:

  • Eurozone Markit mftg PMI Nov flash 52.8 vs 52.3 exp
  • Germany Markit mftg PMI Nov flash 52.6 vs 52.0 exp
  • France Markit mftg PMI Nov flash 50.8 vs 50.8 exp

The session has been a cautious one again but we've seen a continuation of USD dominance with the pound getting particular attention

Asian defence of a EURUSD barrier option at 1.0600 has led to some euro underpinning elsewhere too this morning coupled with some better PMI data

EURGBP has risen in two stages from 0.6995 to 0.7026 and that has driven cable down to 1.5126 from 1.5175 while EURUSD has found plenty of supply above 1.0635. Pound pairs across the board have made losses but less so against the also-weakening swiss franc.

USDCHF had an initial knock back toward 1.0180 which helped EURCHF lose a little ground to 1.0820 but both pairs have also enjoyed a move back up to 1.0226 and 1.0855

USDCAD enjoyed an early rally to 1.3436 on oil price slides having wiped its feet at 1.3400 but has since seen a significant reversal to 1.3357 as I type as oil prices recover

USDJPY has been caught in the cross plays again but held its own above 123.00 albeit with limited gains while AUDUSD has found a bit of demand into 0.7170 to rally and test 0.7200 as I type with NZDUSD trawling between 0.6500-20 for the most part

US mftg PMI and existing home sales coming up with US Fed meeting at 16.30 that has been the focus of some conjecture as I posted yesterday