Forex news from the European morning session 24 March 2015
News:
- Airbus A320 crashes in French alps
- Greece will present reform package to Eurogroup by next Monday at the latest
- BOJ's Kuroda says tapering would be one way to exit QQE
- Japan's Aso says sudden rises and falls in the yen are undesirable
- Fed's Bullard says he expects US growth to rebound in Q2
- Bullard: Economy is expected to going into boom times
- UK election 2015: PM Cameron says he will not be staying for a third term
- With the UK one step from deflation will the market now look for a more dovish Bank of England?
Data:
- February 2015 UK CPI 0.0% vs +0.1% exp y/y
- UK PPI input mm Feb +0.2% vs +1.6% exp
- Eurozone Markit mftg PMI 51.9 vs 51.5 exp
- German Markit mftg PMI 52.4 vs 51.5 exp
- French Markit mftg PMI flash 48.2 vs 48.5 exp
- Nikkei 225 closes down -0.21% at 19,713.45
Firstly I must highlight the awful news of the air crash in the Alps which is believed to have killed all 148 people on board. Our thoughts and condolences to all concerned
Market wise it's been another decent session that has seen the pound get slapped again on weaker CPI data but the euro find further demand on better PMI flash readings with USD still out of favour too.
The euro found some support from the off on a weaker USD and was soon building on that after the better than expected PMI data. EURUSD has tested 1.1000 but has fallen shy so far of building on those gains but EURGBP has been up to 0.7372 and EURJPY to 131.42 and overall the euro is still feeling the love
GBPUSD was finding some benefit from the USD-softer tones and posted 1.4955 but then came the weaker CPI and down she came from 1.4945 to sub 1.4900 before then recovering some poise back to 1.4930 as EURGBP runs into resistance after its own decent run this morning from 0.7317 to 0.7372 as the data kicked in. Overall the pound is still very much on the backfoot with the chances of further monetary easing not being ruled out, and an election coming up in 6 weeks to boot.
USDJPY started on a softer tone around 119.60 after a softer Nikkei performance and was soon challenging good bids at 119.50 before then bouncing but capping again into 119.65. The bids now have been fully chewed through to post 119.29. EURJPY has similarly given up some its ealry gains and back to 131.15 from 131.42
USDCAD has slid to 1.2465 from 1.2500 on softer USD tones and with oil prices firming before capping while AUDUSD has seen a steady rise to challenge 0.7900 from 0.7845, and NZDUSD similarly from 0.7640 to 0.7665 with AUDNZD picking up demand into 1.0265 to post 1.0318
US CPI out at 12.30 GMT should help fan the flames further
