Forex news from the European session 11 September

9/11 Lest we Forget

News:

  • ECB's Coeure says asset purchases to continue for as long as needed
  • ECB's Coeure says growth not strong enough to create a sufficient number of jobs
  • Germany's Schaeuble says large amounts of liquidity can lead to price bubbles
  • Japan's Yamamoto says BOJ must ease policy further at some point
  • PBOC will change RRR calculation for banks
  • NDRC's Zhang says Chinese economy faces " relatively large" downward pressure
  • China new yuan loans August CNY 809.6bln vs 850.0bln exp
  • Bank Negara keeps Malaysian overnight rate at 3.25% as expected
  • Reuters poll has SNB leaving benchmark rates unchanged through 2016
  • IEA raises global oil demand growth forecast by 110kbpd to 1.71mln bpd
  • Goldman Sachs cuts oil price forecasts and sees potential for $20 per barrel
  • Germany says talks with France, Russia and Ukraine likely to include Syrian crisis
  • Syriza lead widens to 5 points in latest Greek election poll
  • In the UK only 5% of people know who the MPC is and 4% think the ECB sets UK interest rates
  • Nomura pushes back its RBA rate cut forecast to Feb 2016
  • China is only the trigger - More from guest economist John Hearn
  • Option expiries 10am NY cut today 11 Sept

Data:

  • Germany CPI August mm final 0.0% as expected
  • Spain CPI August final mm -0.3% as exp
  • Italy industrial production July mm +1.1% vs +0.8% exp
  • July 2015 UK construction output -1.0% vs 0.5% exp m/m
  • August 2015 UK BOE GFK 12m inflation expectations 2.0% vs 2.2% prior
  • Nikkei 225 closes down -0.19% at 18,264.22

A mixed bag of a session that has had a definite end-of-week feel about it as we also remember those who lost their lives on 9/11

The euro started off in perky enough fashion with EURUSD posting 1.1310, EURJPY 136.43 and EURGBP 0.7320 but then softer German WPI and Coeure comments helped pour a little cold water on the rally along with a generally better US$ sentiment and we've since been down to 1.1254, 0.7303, and 135.72

GBPUSD flirted again around 1.5450 but then also gave up and now testing 1.5400 as I type while USDJPY has recovered to 120.65 from an earlier shake-down to 120.36

Leading the way though has been USDCHF which found good demand into 0.9700 to post a strong (SNB-led?) rally to 0.9783 taking EURCHF with it finally through 1.1000 to post 1.1031 before running out of steam

USDCAD has climbed to 1.3275 on softer oil price before retreating while AUDUSD found itself on the back foot to 0.7036 before finding fresh buyers while NZDUSD has had the morning off treading water below 0.6300.

US PPI and Michigan consumer sentiment to come and hopefully add some end of week heat to a dish that is in danger of getting cold as attention focusses on next week's FOMC meeting