Forex news from the European morning session 20 Jan
News:
- Japanese government official says they are closely watching currency markets
- Japan's Amari says Monetary policy decisions are up to the BOJ
- BOJ likely to cut fiscal year core CPI forecast to below 1%
- Suga says falling oil prices help Japanese economy
- Japan Post preparing to start investment in alternative assets
- 116.00 has been a solid line of defence but are its days numbered? USDJPY forex technical analysis
- USDJPY option barrier noted at 115.50, large stops in place at 115.75/80
- PBOC says it will co-ordinate fiscal and financial policy
- EU's Moscovici says central banks " still have guns" to address weak growth
- ECB's Nowotny says it will be difficult to reach inflation goal
- ECB's Vasiliauskas says QE has had a positive effect on the Eurozone - MNI
- EU's Moscovici says Greek pension reform needed as fast as possible
- Russian rouble hits new record low versus US$
- RBI's Rajan says they are on the right monetary policy path
- Bank of Canada steals the show today so what can we expec?
- Oil will not rise above $100 quickly says IMF's Zhu - LivesquAWK
UBS CEO Weber says global economy not in a downward spiral
Option expiries 10am NY cut today 20 Jan
More option expiries of note this week
Data:
- December 2015 UK labour market report: Claimant count -4.3k vs +2.5k exp
- Germany PPI Dec mm -0.5% vs -0.4% exp
- Nikkei 225 closes down -3.71% at 16,416.19
Another risk-related session with equities and oil falling again and the BOJ issues a timely warning.
Falls in Asian equities and renewed falls in oil price added up to a shaky start to the European session which saw yen demand and driving USDJPY down through barrier support at 116.00 but then the BOJ comments saw a rapid return above 116.50 and traders have remained cautious since.
The euro saw further support from softer equities with EURUSD up to 1.0976 and EURGBP to 0.7756 but those gains have been reversed in rapid time as I type as euro demand runs out of steam.
The early demand for EURGBP put cable under pressure and that wasn't helped by the weaker UK wages and jobs data but the euro reverse has seen a test of 1.4200 before once again finding sellers. EURGBP is testing 0.7700 again after those earlier 1-year highs.
USDCAD has seen a test of 1.4700 as oil tumbles again while AUD and NZD have also been on the back foot.
Attention now turns to the BOC decision at 15.00 GMT but we've a lot of trading to be had in the meantime.
