Forex news from the European morning session 14 Oct

News:

  • Japan's Amari says it's too soon to be speaking about new stimulus
  • Japanese government lowers its economic forecast
  • ECB governing council is determined to fulfil its mandate
  • Germany lowers its 2015 GDP forecast to +1.7% vs +1.8% prev
  • Germany's Gabriel says economy on solid track despite slower economic growth in China/emerging markets
  • Gold fails the 200 DMA test
  • Spain's Guindos brushes off EU criticism of budget
  • Goldman Sachs add another RBA rate cut to their 2016 forecasts
  • What? A non dollar bullish bank?
  • From pummelled to proud for the pound
  • Option expiries 10am NY cut today 14 Oct

Data:

  • UK average weekly earnings August +3.0 % vs +3.1% exp.
  • August 2015 Eurozone industrial production -0.5% vs -0.5% exp m/m
  • France CPI Sept mm -0.4% as expected
  • Italian HICP holds up in September
  • pain CPI Sept mm final -0.3% as exp
  • Switzerland CS ZEW expectations survey Oct 18.3 vs 9.7 prev
  • US MBA mortgage market index 387.0 vs 534.2 prev
  • Nikkei 225 closes down -1.89% at 17,891.00

Another busy session for the pound after the latest UK wages and jobs report

One again we saw early euro demand as European equities opened softer following on from weaker Asian markets. EURUSD chewed through offers into 1.1425 from 1.1390 sending EURGBP to 0.7475 and EURJPY to 136.62

The rally ran out of steam again though and we were soon enough in retreat and have been for the most of the session remainder as I type.

The headline UK wages and jobs data initially sent the pound lower with GBPUSD returning back below 1.5290 after a hard-fought rally to 1.5330 prior. But the underlying data was more positive as we highlighted at the time.

Cue a sharp GBP rally which has seen cable up to 1.5374 and EURGBP down to 0.7414 so far and overall the pound has had a good morning at the office

Softer Nikkei saw USDJPY down to 119.43 but has found cross play demand while USDCHF has similarly been restricted by cross play impact

AUDUSD tried to take advantage of the US$-neg sentiment to post 0.7278 from 0.7225 but weaker gold price saw a retreat below 0.7240 before finding fresh buyers.

USDCAD has twice capped into 1.3020 offers on oil price firming but has demand into 1.2980 still while NZDUSD has had a steady climb to 0.6750 before also running out of steam

Lively times again with more to come before the day is out