Forex news from the European morning session 9 March 2015
News:
- Japan's Abe says govt will leave monetary policy specifics to BOJ
- Abe adviser Honda sees no problem for Japanese economy overall with USDJPY around 120
- Greek exit from euro could be managed says Germany's Fuchs
- ECB policy is leading to a currency war says German export association
- OPEC to continue with current policy at next meeting in June
- Real money buyers seen on EURUSD ahead of large expiry tomorrow
- Barrier option at 0.7600 lends support to AUDUSD
- Option expiries 10am NY cut 10 March
Data:
- French industrial production Jan mm +0.4% vs -0.3% exp
- Italian industrial production Jan mm -0.7% vs +0.2% exp
- Swiss unemployment rate Feb mm 3.5% as exp/prev
- Japan machine tool orders Feb flash yy +28.9% vs +20.4% prev
- Nikkei closes down -0.67 % at 18,665.11
As the dust settles on last week's ECB QE detail so the doubts as to its effectiveness increase, as does the pressure on the Euro as cheap borrowing makes it the new funding currency of choice.
Any rallies are short-lived right now and we've seen EURUSD sold down this morning to 1.0735 before finding option led demand having broken 1.0800 support in Asia, while EURGBP is still following it down on those interest rate plays and so far we've posted 0.7130 which means GBPEUR has now broken up through the heady heights of 1.4000
Across the board the picture is the same with the Euro getting slapped and the Pound enjoying further gains apart from vs the US$ as that currency continues its domination on interest rate hike expectations. GBPUSD has fallen to support around 1.5030 again but elswhere the Pound has found favour as other currencies fall faster
USDJPY has now posted 122.00 before falling back to 121.42 as I type as EURJPY posts new session lows at 103.34 and USDCHF has posted 0.9960 before retreating too this morning
USDCAD saw a decent rally to 1.2684 from 1.2630 on oil price falls while AUDUSD found demand ahead of a reported barrier option at 0.7600 only to run into offers again above 0.7640. NZDUSD had its own little rally above 0.7300 after the Asian falls but it too ran out of steam.
Plenty going on again, and not going to stop anytime soon
