Forex news from the European session 29 Oct
News:
- ECB's Liikanen says there's still concerns over EM growth
- China scraps the 1 child per couple rule - Livesquawk
- China targets medium-high economic growth for 2016-2020
- ECB's Lautenschlaeger sees dangers in bank oversight by German government
- France's Noyer says French economic growth to "accelerate" in 2016
- UK yet to reveal EU reform details as discussions continue
- So the FOMC hints at December hikes, what's next?
- Option expiries 10am NY cut today 29 Oct
Data:
- Germany October unemployment change -5k vs -4k exp
- October 2015 Eurozone economic sentiment 105.9 vs 105.1 exp
- Saxony CPI Oct mm 0.0% vs -0.1% prev
- North Rhine Westphalia Oct CPI mm 0.0% vs -0.2% prev
- Brandenburg CPI Oct mm -0.1% vs -0.2% prev
- Spain CPI Oct mm flash +0.7% as expected
- UK Nationwide house price index Oct mm+0.6% vs +0.5% exp
- October 2015 UK CBI distributive trade sales 19 vs 35 exp
- September 2015 UK mortgage approvals 68.900k vs 72.450k exp
- Nikkei 225 closes up +0.17% at 18,935.71
It's been a good session for the euro which came in for a hammering after the FOMC's more hawkish tones but it's not been all one-way traffic
The euro had an early wobble as equity markets opened firmer but was soon finding demand as equities turned south and we began to see stronger inflation data from the German regionals
Cue moves on EURUSD from 1.0920 to 1.0977, EURGBP from 0.7155 to 0.7190 and EURJPY to 132.70 from 131.80. Similar patterns in other euro pairs
The firmer euro gave a lift to USDJPY from 120.70 to 120.98 and a cap on cable at 1.5270 from 1.5255
USDCHF has found itself in retreat to 0.9885 from 0.9930 as EURUSD and EURCHF both found support while USDCAD has been trawling between 132.00-20 on the USD uncertainty and softer oil price
AUDUSD had found sellers in Asia into 0.7120 and has been on the back foot to 0.7085 with EURAUD demand adding to the pressure. NZDUSD has seen a decent rebound from 0.6650 though and has climbed steadily to 0.6712 with AUDNZD selling helping it along the way and potential increased dairy sales from the Chinese move to allow 2 children per family
US Q3 GDP flash and German CPI flash are on the horizon with the former likely to have the biggest impact
Plenty of opportunity still with the BOJ meeting tomorrow also casting its shadow
