Forex news from the European morning session 5 February 2015
News:
- Germany’s Weidmann says ECB should apply “strict standards” on ELA
- ECB’s Weidmann: Eurozone states remain fully responsible for their own decisions
- Greek govt official says ECB move will have limited impact
- QE could end earlier if inflation target is met says ECB’s Jazbec- Livesquawk
- ECB’s Jazbec says ECB can’t solve eurozone problems by itself
- Fed’s Rosengren says inflation is taking a more prominent role in Fed deliberations
- It’s a big positive that the ECB has started QE says Rosengren
- Talk of SNB buying EURUSD spurs the euro rally
- ECB’s Praet says EURUSD rate better reflects economic fundamentals than previously
- ECB’s Praet says ECB must be part of comprehensive policy response
- France’s Hollande says ECB decision on funding for Greece is legitimate
- QE is significant enough to have macroeconomic impact says Moscovici
- EU is in constructive talks with Greek government says Moscovici
- ECB monthly bulletin: QE to last until sustained adjustment in inflation path
- EU sees higher growth in 2015
- Eurozone retail PMI’s point to another soft sales month in January
- Japan’s Suga says BOJ nominee Harada is an appropriate choice
- Siemens reported to be cutting 7,400 jobs globally
Data:
- German factory orders Dec mm +4.2% vs +1.5% exp
- UK Halifax house price index Jan mm +2.0% vs 0.0% exp
- Swiss SECO consumer confidence Jan -6 vs -13 exp
- German Markit construction PMI Jan 49.5 vs 50.5
- Nikkei 225 closes down -0.98% at 17,504.62
A lively session with plenty of jawboning, price action and talk of the SNB giving the euro a shove higher too
The euro found some support from the off helped by better German factory data but then had a wobble back after EURUSD failed to breach 1.1400 and traders took the chance to re-enter short positions on euro pairs with EURGBP dipping to 0.7450 from 0.7491 and EURJPY back below 133.00
We then saw a gradual bid tone with none of the jaw-boning adding to yesterday’s fears on Greece but with the uncertainty very much to the fore. Then came a sudden jump through 1.1400 to 1.1430 dragging EURGBP to 0.7510 and EURJPY to 134.22 with traders attributing the move to SNB buying of EURUSD and USDCHF to drive EURCHF higher to 0.9314 and 1.0646 before retreating from those key levels
GBPUSD has been dragged around by EUR pairs and has rallied to 1.5255 from looking below 1.5200 but run into sellers as EURGBP rallied before itself finding buyers as the euro pairs drifted back
USDCAD had a move back down to 1.2500 from 1.2585 as oil prices firmed while AUDUSD and NZDUSD have both found a bid for the most of the session with the former clinging to gains above 0.7800
Another busy morning and with US and Canadian trade data looming we can expect more fun n games to come
