Forex news from the European morning session 9 Dec
News:
- Japan's GPIF ready to hedge against USD,EUR fluctuations if necessary
- IFO cuts German 2015 GDP forecast to +1.7% from +1.9% prev
- Nowotny says ECB decision last week was right
- There was a massive failure of market analysts last week says Nowotny
- ECB deemed stimulus adjustments were needed says Hansson
- World Bank says commodity prices not expected to recover strongly over next 5 years
- ECB could buy only €3.5bn in Greek bonds under QE program
- BOE FPC says it's hard to predict market reaction to any Fed tightening
- China to take steps to increase bad debt write-offs in financial sector
- Fitch keeps EBRD rating at AAA and outlook stable
- Anglo American stock falls to record low after job cuts news
- What I wish I knew when I first started trading forex - Part 1
- Option expiries 10am NY cut today 9 Dec
Data:
- German trade balance Oct +€22.5bln vs +€21.7bln exp
- Switzerland unemployment rate Nov +3.4% as exp
- US MBA mortgage applications +1.2% vs -0.2% prior
- Japan machine tool orders Nov flash yy -17.9% vs -22.9%prev
- Nikkei 225 closes down -0.98% at 19,301.09
The session has been another scrappy one with the US$ initially holding up but then failure to advance further encouraged wider spread selling
USDJPY had fallen on Nikkei/GPIF but found support into 122.60 and recovered before running into fresh supply around 122.80 and dropping back to test 122.50
GBPUSD had run into good offers at 1.5050 and didn't look like it had the stamina to go beyond but with EURGBP capping and turning back down toward 0.7250 we saw cable pick up a bid to take on the next layer of offers into 1.5080 before stalling again
Overall the pound has had a decent morning given that this time yesterday it was on the receiving end of some solid selling
USDCHF has been in retreat from 0.9930 to test 0.9900 finding a little support along the way from EURCHF holding above 1.0830.
EURUSD had been perky around 1.0930 but then found itself heading back toward 1.0900 in a general euro retreat as European equities firmed. Then the USD weakness kicked in and we've been back to 1.0945
That USD supply has also seen USDCAD down to test 1.3550 from 1.3600 and has provided support for AUDUSD into 0.7180 after further initial falls from 0.7230. NZDUSD similarly has fallen from 0.6640 but found fresh demand below 0.6600 to recover to 0.6625 as I type
Not a data day so we shall continue to seek inspiration from commodity and equity markets
