Forex news from the European morning session 25 August
News:
- China PBOC cuts interest rates and RRR
- France's Macron says China poses risks to global economic recovery
- France's Macron expects the Fed to leave rates on hold in September
- Japan's Hamada says BOJ must ease further if Q3 GDP fails to grow
- Germany's Gabriel says the German economy has no fear for Chinese turmoil
- HSBC says China has enough ammo to keep its economy up
- China to cut stock stamp tax Sep 1st - Livesquawk
- Japan's Nikai says government needs to produce a supplementary fiscal budget
- IFO still expects German Q3 GDP at 0.4% and 1.7% for 2015
- Euro falls as equity markets enjoy the the PBOC rate cut
- Has China finally woken up and realised stock market intervention is pointless?
- SNB back in the frame as CHF pairs rise rapidly
- Option expiries 10am NY cut today 25 August
- Option expiries of note in the next week
Data:
- Germany IFO business climate August 108.3 vs 107.6 exp
- Germany Q2 GDP final qq +0.4% vs +0.4% exp
- Spain PPI July mm +0.1% vs +0.9% prev
- Nikkei 225 closes down -3.96% at 17,806.70
The PBOC cut only came in the last hour but it's still the session headline and now asks questions for the rest of the day, indeed week, ahead
We saw a solid start to the session from equity market despite further Chinese losses of 7% and the Nikkei giving up gains to finish down 4%. The euro got sold off only to run into support and rally once more, but the mood was different as equities stayed firm, including Nikkei futures, and rallies were sold into again
USDJPY had dipped below 119.00 in late Asia but ran into good support and edged higher back through 119.50 dragging yen pairs with it.
GBPUSD found bids between 1.5750-70 as EURGBP retreated and was soon enough posting highs of 1.5819 before running into more offers
Then cue the PBOC move and a rally in equities/commodities which saw EURUSD sold off to 1.1456 from 1.1510, EURGBP 0.7258 from 0.7305 and EURJPY 137.80 from 138.20
USDJPY motored up to 120.40 and that prevented EURJPY from falling further and USDCHF rallied to 0.9440 resistance/offers after failing there earlier
WTI and Brent have enjoyed a good day at the office albeit running into fresh sellers on the rally. USDCAD has dropped to 1.3170 from 1.3299 while AUDUSD and NZDUSD rallied to 0.7250 and 0.6560 before finding sellers again
Another topsy-turvy session and with US data to throw in the mix the markets will remain volatile
