Forex news for the European morning trading session 5 Oct 2017
Featured article: Should you use EAs in forex trading?
News:
- More on that Sky news report saying May not considering resigning
- Germany's BDI express concern over rate of progress in Brexit talks
- Sky News reports on Downing St statement - resignation is not an issue for May
- Nowotny says ECB must take foot off QE gas pedal gradually, not hit the brakes
- Saudi Arabia say they going to be committed to oil production curbs
- SNB's Jordan says Swiss franc is still strong
- Spain's De Guindos says independence for Catalonia won't happen
- French President Macron says go get a job
- Japan MoF, BOJ and FSA meeting today
- Reuters Asia FX poll: Investors estimated to have reduced longs on Chinese yuan
PIMCO says Monetary Authority of Singapore may surprise financial markets this month
SG on central banks' 'tightening by stealth' (and they single out the ECB specifically)
ForexLive Asia FX news wrap: AUD drops on huge retail sales data miss
Data:
- Switzerland Sept CPI mm 0.2% as expected
- Germany Markit Sept construction PMI 53.4 vs 54.9 prev
- UK new car registrations in Sep. -9.3%
India Nikkei/Markit/IHS Sept services PMI 50.7 vs 47.5 prev
Brexit and May? Sounds like a firm of lawyers or accountants both of which the UK and pound could do with right now.
The pound has once again been under pressure with Brexit still hogging the headlines and talk of PM May's impending resignation after yesterday's awful, if sincere, party conference speech in which a catalogue of errors plagued her throughout.
We saw GBPUSD fall sharply from 1.3230 1.3186 with EURGBP spiking to 0.8925 from 0.8890 and GBPJPY probably the prime mover as a favoured hedge fund play falling to 148.60 then 148.10 from 149.30.
GBPJPY 15m
Yen demand was indeed a feature of much of the session with large-ish option expiries on USDJPY between 112.70-80 creating a cap and helping to send the pair down to 112.50 support before breaking through and posting 112.43.
EUR pairs felt some early love with EURGBP demand helping EURUSD rally up to 1.1776 after an early look at 1.1750 but then came down led by EURGBP and EURJPY both turning lower.
USDCHF support helped by a early rally in EURCHF and has sustained gains into 0.9775 from 0.9745 as EURCHF turned lower after failing into 1.1500 but so did EURUSD.
AUDUSD steady around 0.7820 after the retail sales-led fall from 0.7860, USDCAD mostly 1.2470-90 despite oil firming and NZDUSD tight between 0.7150-65
NA data and CB talking heads to come from both Fed and BOE.
