Forex news from the European morning session 2 Dec
News:
- BOJ's Iwata says monetary policy will not be decided by any single price data
- More from Iwata: Maintaining current QQE is most appropriate
- ECB's QE programme is better than doing nothing
- Spanish economy is still vulnerable says De Guindos
- BOE's Cunliffe says UK banks not quite where BOE needs them, but close
- China says it welcomes the yuan's inclusion in IMF SDR basket
- Volkswagen's CEO hopes emissions scandal will largely be over by end-2016
- EURUSD option expiries still casting a shadow
- Did Eurozone inflation just put the rubber stamp on greater ECB action?
- It's the euro's turn to get a kicking after softer inflation data from the Eurozone
- Cable hangs onto 1.5030 as UK construction PMI disappoints
- Time to shine the light on US jobs and a chance for you to win a prize
- Option expiries 10am NY cut today 2 Dec
- How to trade what's in front of you with a complex exit strategy + cheat-sheet
Data:
- November 2015 Eurozone HICP flash 0.1% vs 0.2% exp y/y
- October 2015 Eurozone PPI -0.3% vs -0.4% exp m/m
- November 2015 UK Markit/CIPS construction PMI 55.3 vs 58.2 exp
- Spain unemployment Nov mm net -27.1k vs -6.2k exp
- Nikkei 225 closes down -0.37% at 19,938.13
It's been a lively session with both the euro and pound taking turns for a slap lower after weaker than expected data
The pound was the first to feel the market's displeasure as softer UK construction PMI sent cable down through 1.5050 to test 1.5030 support having already been capped below 1.5085 from firmer EURGBP price action.
That pair flew to 0.7070 from 0.7048 having chewed its way up from 0.7030 support but it's time in the sun was short-lived as Eurzone core CPI data sent shivers through euro-longs again ahead of tomorrow's key ECB meeting.
We saw EURUSD fall back through 1.0600 having posted highs of 1.0637 to reach lows of 1.0583 before running into fresh demand. Large option expiry interest at 1.0600 is providing a good layer of bids into 1.0575 and we're back at 1.0593 as I type
USDJPY has been caught up in the cross-play crossfire and contained within a 123.00-20 range while USDCHF has seen similar price action around 1.0265
AUDUSD found 0.7350 a step too far in Asia but supported in Europe into 0.7300 to climb back up to 0.7335 while NZDUSD has been trawling around in a tight band of 0.6655-75
USDCAD has also found itself in narrow range remaining between 1.3360-80 throughout Asia and Europe with oil lower but USD in wait-and-see mode ahead of US ADP data and speeches from various Fed-heads including Yellen
A busy session so far that has plenty more to offer before the day is out