Forex news for European trading - 30 September
- German September CPI 0.0% vs 0.0% expected
- Fitch downgrades Saudi Arabia to 'A', outlook stable
- Brexit and legs!: PM Johnson defends 'touching claims' (ladies thigh apparently)
- What now for the GBP relating to the Benn Act?
- EUR extends falls after Reuters story on German Growth forecast
- European Equity markets fade a little
- China Global Times: Hong Kong Protesters considering serious violence
- Italian PM Conte: Will avoid VAT tax increase
- EURUSD in focus: $2.3bln option at 1.0900
- Chart in focus: NZDCAD approaching 0.8300
- Eurozone August unemployment rate 7.4% vs 7.5% prior
- Quick look at regional CPI releases ahead of German main release at 1300BST
- UK Mortgage lending 3.85bln vs 4.2bln expected
- CPI Brandenburg September -0.1% vs -0.2%m/m prior
- SNB total sight deposits w.e.27 September 592.2 vs 592.1bln prior
- German September unemployment change-10K vs 5.0k expected
- UK Brexit news latest: Opposition leaders to try and force Johnson's hand
- European bourses in the red and risk is looking off.
- Switzerland September KOF leading indicator 93.2 vs 96.2 expected
- Saxony September CPI -0.1% vs -0.2% m/m prior
- European futures marginally down ahead of open
- Brexit: UK Finance Minster Javid on the wires
- ECB's Draghi: Most risks to eurozone come from outside the eurozone
- Looking at EURUSD ahead of CPI data
Markets
- Dax: +0.3%
- UK FTSE: -0.29%
- Euro Stoxx: +0.09%
- France 40 (CAC): +0.07%
- IBEX:+0.37%
- Ps120: +0.61%
It was a quiet month end European morning session as the market kept to narrow ranges and was undecided on a risk move with any conviction. The overnight Asian indices gave a risk off lead, but Europe rejected the hint and made some gentle gains during the session before paring them back after 1200BST (and then bid a little more into 1300BST). The concerns over the US finance restrictions on Chinese investments didn't take root and the market is still making its mind up whether to go with the story or not as China prepares for 'Golden Week' and will not return until Oct 08.
German regional inflation levels were higher for the m/m readings and lower for the y/y levels. EURUSD was unimpressed as there was nothing here we didn't really know or are surpised by. Draghi said a few words during the session highlighting the need for fiscal policy vs monetary policy which has been his closing tune to play before exiting stage right.
EURUSD was contained by a large option of $2.3bln at 1.0900 and price moved down towards, but bounced away from at time of writing. Main German CPI reading has been and gone too and reflects the regional prints we have already had - ok m/m, weak y/y.
NZD was weak on the day after the slow business confidence and we spoke about expecting NZDCAD seller on pullback up to into 0.8300 and beyond. Brexit headline risk remains with the Benn Act in key focus as opposition MP's try to bring the deal date forward and make it hard for PM Johnson to force a no-deal Brexit on October 31.
