Forex news from the European morning session 10 DecNews:
News:
SNB leaves interest rates on hold
SNB's Jordan says inflation expectations have stabilized since CHF cap was removed
- SNB's Jordan sees no risk of deflationary spiral
- More from Jordan: Normalisation of US monetary policy would send a very positive sign
- Yet more from Jordan: SNB still has firepower
- ECB's Jazbec: ECB will do all it can to fulfil its mandate on inflation
- ECB is ready to do more says Liikanen
- ECB's Mersch says they can always add more QE " if the sky falls in!
- ECB's Mersch blames leaks for inflated expectations
- Bank of England Preview: Will Carney & Co paint a more hawkish picture now the Fed is nailed on for a hike?
- Preview: Cable underpinned ahead of BOE as EURGBP retreats
- BOE Preview: Don't mistake boring for hawkish say Credit Agricole
- Japan's FSA is investigating property lending by regional banks
- OPEC raises 2015 oil demand growth forecast by 30,000 bpd to 1.53mln bpd
- Goldman Sachs see more downside risk for oil. (Plus, the guy you should really listen to.)
Option expiries 10am NY cut today 10 Dec
Data:
France CPI Nov mm -0.2% vs 0.0% exp
October 2015 UK visible trade balance -11.827bn vs -9.700bn exp
China's 2015 automobile sales to rise by 3.0%
France Q3 non-farm payrolls qq final 0.0% vs +0.1% exp
China's vehicle sales Nov yy +20.0% vs +11.8% prev
Nikkei 225 closes down -1.32% at 19,046.55
A busy session which has seen the euro on the back foot with central banks also in focus
Failure to hold Asian gains to 1.1025 saw EURUSD retreat which then became general euro weakness as equities pared early losses. EURUSD has since been down to 1.0935 with EURGBP testing 0.7200 from 0.7255 and EURJPY now on lows of 132.90 from 133.85
EURCHF had a quick wobble to 1.0800 after SNB did nothing but jaw-bone but soon found fresh buyers to post 1.0835 only to wander back down amidst the euro selling and we've had 1.0794 lows. USDCHF rallied to 0.9909 from 0.9950 as traders reacted to repeated SNB threats to intervene and/or cut rates in the future but that pair too has since fallen back to 0.9865 on the EURCHF retreat
The EURGBP selling put a bid under cable around 1.5170 after failing to breach 1.5200 as we await the BOE
USDJPY has fallen back to 121.35 on a combo of softer Nikkei and EURJPY supply while USDCAD has traded tightly between 1.3535-70 after oil reversed early gains
Similarly AUDUSD and NZDUSD have traded tightly around 0.7300 and 0.6740 caught up in the cross play cross fire
Little by way of data coming up so we'll keep an eye on commodities and equities still
