Forex news from the European morning session 5 March 2015
News:
- Bank of England leaves rates unchanged at 0.5%
- EU's Moscovici says Eurozone recovery is still fragile
- BOJ's Kiuchi says QQE effects are diminishing
- China's Economic Planning Agency says improvement in external demand unlikely in 2015
- Serious Fraud Office begins its investigation into BOE liquidity auctions in 2007-2008
- Russia's MICEX says it stops forex trading
- US data to be slightly delayed again due to adverse weather conditions
- Option expiries for 10am NY cut 5 March
Data:
- Italian Q4 GDP final qq 0.0% as exp/prev
- Eurozone Markit retail PMI Feb 46.4 vs 46.6 prev
- UK Halifax house price index Feb mm -0.3% vs -0.2% exp
- German factory orders Jan mm -3.9% vs -1.0% exp
- French ILO Q4 unemployment rate 10.4% as expected
- Nikkei 225 closes up +0.26% at 18,751.84
Traders have been understandably cautious ahead of the ECB QE details being unveiled
Today’s key ECB meeting event, where we are due to learn how and when they will introduce the QE announced last time, has traders in standby mode and we’re seeing the Euro on the back foot still but that could all change later if Draghi is anything less than dovish
EURUSD has been down to new recent lows of 1.1026 dragging EURGBP to 0.7237 (1.3820) again and EURJPY to 132.14 and although we’ve seen a small recovery this morning it’s still touch and go and this afternoon promises to be an extremely lively affair
GBPUSD has also been dragged down to 1.5225 and likely to be pulled around by EURGBP later. The BOE has left everything unchanged again as expected.
USDCAD has dipped further into 1.2400 after the Bank of Canada decided to leave interest rates on hold yesterday and firmer oil prices this morning. AUDUSD still unable to get across 0.7850 with large option expiry today there too. NZD similarly on the retreat too into 0.7500
USDCHF still looks wanted and USDJPY has jumped back over 120.00 this morning after holding 119.50 support again in what is still a generall USD-positive sentiment ahead of the key US jobs data tomorrow
But first we have to see what ECB president Draghi has in store for us today and it’s now time to get strapped in ready
