Forex news from the European morning session 30 January 2015
News:
- Central bank of Russia cuts interest rates to 15% from 17%
- ECB’s Visco says Eurozone GDP will return to pre-crisis levels next year
- Jaeger says Germany’s generosity was “pushed to the absolute limit” on bail out deal for Greece
- Germany says Greek debt haircut talk is not in tune with reality
- Japan’s Suga says govt and BOJ doing their utmost to reach inflation target
- You can bank on Spain’s de Guindos as Spanish growth jumps
- SNB Q4 currency holdings
- Two different tales from the UK lending story book
- Australia – RBA meeting next week – views from economists summarised
- Option expiries 10am NY cut 30 Jan
Data:
- January 2015 Eurozone HICP flash -0.6% vs -0.5% exp y/y
- Eurostat revises Eurozone Core inflation to 0.6% from 0.5%
- Eurozone unemployment rate Dec 11.4% vs 11.5% exp
- German retail sales Dec mm +0.2% vs +0.3% exp
- December 2014 UK BOE consumer credit 0.578bn vs 1.200bn exp
- French PPI Dec mm -0.9% vs -0.1% prev
- Swiss KOF leading indicator Jan 97.0 vs 94.7 exp
- Italian PPI Dec mm -0.8% vs -0.1% prev
- Greek retail sales Nov yy -1.6% vs +2.1% prev
- Japanese construction orders Dec yy 7.5% vs16.9% prev
- Nikkei closes up +0.39% at 17674.39
It’s been a rather subdued session by recent standards but there’s still been some decent opportunities across the board as traders wait to see what the US GDP brings us
The euro had a wobble lower on the softer CPI data but support into 1.1300 saw a rally back to post fresh session highs of 1.1364 dragging euro pairs back up with EURGBP rallying to 0.7525 after support held at 0.7500 and EURJPY to 133.70 from a dip to 132.97 only to fall back to 133.40 as I type
USDJPY has had a softer tone generally dropping from 118.05 but limited price range for the most part as yen pairs dominate. Support into 117.50 held to provide a base and move back to 117.75
GBPUSD had an early look at 1.5100 from 1.5065 as EURGBP found a few offers but then fell back to from whence it came only to then move back up as EURUSD edged higher again before then dropping back one more with 1.5050 tested as I type
Swissy pairs had another early rally as SNB reported to be “smoothing” still in preparation for a 1.05-1.10 range on EURCHF but , as has been the pattern this week, we saw a rapid drop to from 1.0525 to 1.0420 only to find fresh demand. Similarly USDCHF had a rally to 0.9287 only to fall back to 0.9200 before picking up more buyers
USDCAD seems determined to post 1.3000 sooner rather than later and we’ve had 1.2678 posted only to retreat a little as has been the pattern. Demand below 1.2650 has prevented further falls for the moment. AUDUSD dipped further to 0.7730 only to spike to 0.7780 on RBA rate talk
So it’s eyes down and waiting for the US/Canadian data and potential fall-out before we head out for the week-end
