Forex news from the European morning session 2 April 2015
News:
- ECB's Lautenschlaeger has doubts that QE programme will have the desired economic impact
- France says progress has been made with latest Greek reforms
- ECB says that QE purchased bonds will be available for lending from today 2 April
- UK election 2015: The circus is well and truly underway
- Option expiries 10am NY cut 2 April
Data:
- UK Markit/CIPS construction PMI March 57.8 vs 59.8 exp
- Italian 2014 public deficit to GDP ratio 3.0% vs 2.9% in 2013
- Nikkei 225 closes up +1.46% at 19,312.79
It's been decent enough session with pips up for grabs in thin conditions as traders, ( those even still at their desks) get set for Easter hols
The euro has had a strong, steady, upward session as markets start to trim back positions ahead of the long w-e and US NFPs out tomorrow. EURUSD has posted 1.0844 from 1.0780 dragging EURJPY up to 129.61 from 128.85 and EURGBP from 0.7262 to 0.7295 before weaker UK construction data gave it another gradual lift to 0.7320 which has capped the move so far.
That weak data sent cable down to 1.4817 in a rush from 1.4836 having capped earlier at 1.4869 andf then was soon challenging 1.4790-00 as EURGBP demand sustained. Overall the Pound has had a soggy morning as too has the Aussie $ which has continued its offered theme from Asia with AUDUSD failing to get back above 0.7600 and retreating to test reported option-barrier defence at 0.7550
USDJPY has been pinned around 119.50 for the most part, underpinned by the EURJPY buying and not really looking likely to rally into the large expiry at 120.00 today but still cant be ruled out
USDCAD has enjoyed some support on lower oil prices and we've seen the pair up to 1.2640 from 1.2600 while the Aussie $ has remained under pressure on softer iron ore price and AUDUSD has dropped again to take out the barrier option at 0.7550 after an early rally failed to breach 0.7600. NZDUSD has largely benefitted from USD selling and AUDNZD selling and climbed from 0.7450 to 0.7497 before also retreating
With the long Easter week-end approaching expect liquidity to get even thinner, giving tomorrow's NFPs even greater potential to add some volatility
