Forex news from the European session 18 Sept

News:

  • Japanese parliament rejects no-confidence motion against PM Abe
  • China's 7% GDP growth is "very reasonable"
  • PBOC orders banks to check authenticity of clients' FX trades
  • China's securities regulator says it will continue crackdowns on illegal and speculative trading
  • Latest poll has New Democracy in the lead ahead of Sunday's election
  • BAFIN survey shows continued low rates produce major profit decline in German banks profit
  • Germany is concerned about low-rate environment says finance ministry
  • ECB's Coeure: Emerging and financial markets are risks to the outlook
  • Russia's Siluanov says $50 oil price already considered an "optimistic level"
  • Russia's Siluanov says they didn't think oil prices would dip that much
  • Russian oil output may fall if prices decline further says deputy energy minister
  • BOE dove alert as Haldane steps to the rostrum today
  • UBS says lack of action from Fed could give BOJ room to ease further
  • Westpac revise their forecast to December for next RBNZ rate cut
  • Option expiries 10am NY cut today 18 Sept

Data:

  • Eurozone current account July EUR +22.6bln vs +24.9bln prev
  • Japan nationwide department store sales Aug yy +2.7% vs +3.4% prev
  • Nikkei 225 closes down -1.96% at 18,070.21

Europe has given a clear thumbs down to the FOMC and its precious USD

The session started off in undecided mode as late Asian trading saw good tw0-way business in tight ranges but as Europe got underway the direction was clear as the US$ came under pressure across the board

USDJPY gave up support at 119.50 and has been down to test the next strong demand area into 119.00 while USDCHF has posted 0.9526 from 0.9610.

EURUSD found good support around 1.1400 and has been up to 1.1460 with GBPUSD eventually following it up to 1.5659 after having an early wobble with EURGBP finding good demand

USDCAD has been on a one-way trip to 1.3011, just above strong lines at 1.3000, from 1.3160 as oil also showed a firmer tone and AUDUSD has taken out 0.7250 offers/res to post 0.7275 as I type. More offers expected into 0.7300

NZDUSD has also enjoyed the ride from 0.6365 to 0.6458 so far

We've seen some profit-taking in the past hour and a little USD demand as we wait to see the reaction from across the pond.