Forex news from the European morning session 30 Nov

News:

  • Japan's GPIF announces record loss for Q3
  • Japan's Suga says GPIF needs to manage pension funds in safe and efficient manner
  • ESM's Regling says Greek debt will not be cut
  • Even more from Kuroda: Government's goal of raising minimum wage is appropriate
  • China's gold reserves higher in October
  • Fitch affirms Singapore ratings at AAA, Outlook stable
  • The Kiwi $ according to Westpac
  • The Key to Consistency: Market Types
  • Cable pops 1.5000 to post fresh 7-month lows
  • Option expiries 10am NY cut tomorrow 1 Dec

Data:

  • Germany retail sales Oct mm -0.4% vs +0.4% exp
  • Saxony CPI Nov mm +0.1% vs 0.0% prev
  • Bavaria CPI Nov mm 0.0% vs +0.2% prev
  • Nov Baden Wuerttemberg CPI 0.3% vs 0.3% prior y/y
  • Nov Hesse CPI up to 0.3% from 0.2% y/y
  • November 2015 Italian HICP 0.1% vs 0.4% exp y/y
  • Italy PPI Oct mm -0.1% vs -0.3% prev
  • October 2015 UK mortgage approvals 69,630 vs 70,000 exp
  • Switzerland KOF leading indicator Oct 97.9 vs 100.2 exp
  • November 2015 UK Lloyds business barometer 55 vs 50 prior
  • Japan housing starts Oct yy -2.5% vs +2.6% exp
  • Nikkei 225 closes down -0.69% at 19,747.47

It's been a typical flow-driven month-end and one that's seen the greenback in demand again

EURUSD made a couple of attempts to breach 1.0600 after stronger data but failed and has dribbled down steadily to post 1.0564 so far with good demand down there holding so far.

GBPUSD also failed into 1.5050 with EUGBP maintaining its usual month-end underpinning at 0.7040 but failing to breach decent res/offers into 0.7055. Since then cable has drifted all the way down to take out barrier option support at 1.5000 to post 1.4998 with limited rallies

USDJPY has seen a steady path up to 123.15 after holding 122.70 while USDCHF has also found itself underpinned around 1.0300 but rallies limited by EURCHF supply above 1.0920

AUDUSD had an early move from 0.7185 to post above 0.7200 with large option expiries (AUD 2bln) rolling off today while NZDUSD has also traded tightly. USDCAD has similarly traded in a narrow band with USD demand tempering firmer oil prices.

Month-end flows expected to dominate into the USN session as usual with the 16.00 GMT fixing notably an impact area.