ForexLive European Wrap: EUR/USD slides again as BUBA downgrades growth forecasts and very weak German IP data keeps the tone heavy ahead of the NFP release
- BUBA Lowers 2012 GDP To 0.7% From 1.0% Previously And Sees 0.4% In 2013 Down From 1.6%
- German Industrial production slides to -2.6% in October
- 7.3 magnitude earthquake rocks Japan, Tsunami warnings for issued, 1 metre waves hit Miyagi prefecture , no quake related injuries so far reported
- UK Oct MFG Output -1.3% M/M (Exp -0.2%M/M), -2.1% Y/Y
- Greece to complete sovereign debt buy-back today- unnamed official
- Greek Final Q3 GDP -6.9% Y/Y
- ECB’s Draghi: Lowering Interest Rates To Stimulate Economies May Risk Sparking Depreciation Pressures In Currencies At Some Future Time
- ECB’s Nowotny: ECB Has An Ambivalent Picture Of The Eurozone
- ECB Mulls Negative Rates As Europe’s Economic Crisis Deepens- AEP at the Telegraph
- Van Rompuy; Complete Euro currency Union still dubious – WSJ
- French Oct Budget Deficit Narrows To Eur -94.6 Bln From Eur -99.4 Bln In 2011
What should have been a quiet snooze ahead of the US NFP data release this afternoon was rudely shattered by BUBA’s forecasts on German growth, which shunted EUR/USD on the back of some system fund selling through ACB bids in the 1.2945/50 area and triggered stops down to 1.2917.
Spanish and Italian bond yield rose sharply with the respected stock indices following lower to the tune of around -0.7% and 1.0 % down.
This was followed by news of a 7.3 quake in Japan that took the shine off USD/JPY and EUR/JPY to lows of 82.17 and 106.20 from session highs of 82.44 and 102.86, before recoveries in both to 82.44 and 106.64. EUR/USD’s rally was limited to 1.2944 after earlier session highs around 1.2964 and has remained under pressure since on weaker German IP data hitting a fresh low of 1.2915 on the session.
Cable lost ground from session highs around 1.6061 slipping to 1.6021 on weak industrial /manufacturing data, but the move originally tempered by a weaker EUR/GBP following the BUBA forecasts.
AUD/USD continues to defy gravity in a tight 1.0460-83 range with strong bids lying in wait down at 1.0440/60, with some attraction towards the 1.0500 and 1.0520 expiries today ahead of barriers in place at 1.0525 and 1.0550. EUR/AUD helped the cause with a further pull back to 1.2331 from earlier session highs of around 1.2367.