Forex news from the European morning session 15 May 2015
News:
- BOJ's Kuroda says a US Fed rate hike would not be negative for global economy
- China's Li says Chinese economy faces "considerable downward pressure"
- PBOC will not inject "specific amount" of liquidity via local debt collateralisation
- UK PM Cameron meeting with SNP leader Sturgeon today
- Options expiries 10am NY cut today 15 May
Data:
- Switzerland PPI April mm -2.1% vs -0.1% exp
- UK construction output mm SA +3.9% vs +4.0% exp
- Japan consumer confidence April sa 41.5 vs 41.8 exp
- Nikkei 225 closes up +0.83% at 19,732.92
It's been a scrappy morning understandably as the week-end approaches after a lively week but one that's seen the greenback find a few buyers in the end
After a quiet time between sessions the euro had another pop higher almost identical to yesterday's as Europe got underway. EURUSD leapt from 1.1370 to 1.1410 dragging EURGBP to 0.7228 from 0.7210 and EURJPY 136.34 from 136.00
We then saw another nudge higher but then blink and you miss it as 10 year US/Bund spreads widened to give the euro a kick back lower and it's been a steady decline since
So far we've seen lows of 1.1346 just above yesterday's base but EURGBP has bounced back from a dip into 0.7210 again while EURJPY has found some support into 136.00 as USDJPY nudges its way to 120.00, falling just short so far
USDCAD used the momentum to finally take out some offers at 1.2030 but making no further progress as yet after finding a base at 11980-1.2000
GBPUSD was capped into 1.5785 by the early EURGBP demand and has needed little excuse to follow EURUSD back down with lows of 1.5710 so far
USDCHF has forged higher to 0.9222 after taking out decent offers/res around 0.9180 with EURCHF finally popping above 1.0435 to rally sharply to 1.0477 as I type
AUDUSD and NZDUSD have both drifted lower firstly on the EUR demand and the USD buying since then.
Data to come out of the US will provide fresh focus but we've got more action to come before the week is out