Forex news from the European session 20 Nov

News:

  • ECB's Draghi says they will do what they must to raise inflation quickly
  • More from Draghi: Economy needs more aid if recovery not self-sustaining
  • 170 hostages being held in Mali hotel
  • Mali attack update: At least 3 hostages dead at Bamako Hotel
  • ECB's Weidmann: Oil drop is stimulus not a harbinger of deflation
  • EU's Drombrovskis says Eurozone faces deflation risks
  • SNB's Jordan says CHF is overvalued and an overvaluation is corrected over time
  • SNB's Jordan says CHF cap exit was inevitable given euro weakness
  • Japan to pursue growth and fiscal reform at the same time
  • IFO's Sinn sees "very low growth" in Europe beyond economic cycle
  • Greek government is targeting 2016 primary budget surplus of 0.5%
  • Euro slides lower on dovish Draghi but what's next?
  • BOJ Monthly Report: Japan's economy has continued to recover moderately
  • What does two opposing central bank moves mean for USDJPY and EURUSD
  • Update: Option expiries for the 10am NY cut today 20 Nov

Data:

  • Germany PPI Oct mm -0.4% vs -0.2% exp
  • October 2015 UK PSNB 7.5bn vs 5.3bn exp m/m
  • Nikkei 225 closes up +0.10% at 19,879.81

Draghi's speech was eagerly expected and he didn't disappoint the euro bears but the move lower soon ran into buyers again

The euro had already come in for a little selling as European equity markets opened firmer and we had EURUSD back down through 1.0700, EURGBP flirting with 0.7000 and EURJPY down to 131.50 with other euro pairs having a similar wobble

Cue Draghi and the move lower accelerated posting 1.0664, 0.6985 and 131.08 respectively as the session lows but the dip provided another opportunity for buyers and EURUSD made its way back above 1.0700 only to fail at 1.0706 to return to 1.0678 as I type.

That rally and with EURGBP holding steady saw GBPUSD rise back above 1.5300 from earlier lows of 1.5263 in line with EURUSD only to also fall back and posting new session lows of 1.5255 as I type

USDJPY has been caught up in the cross play cross fire again but largely on the back foot around 122.75 before rallying higher through 122.85 while USDCHF similarly was on the back foot around 1.0130 with EURCHF falling to 1.0834 but both pairs have found support again to post 1.0170 and 1.0861

AUDUSD, NZDUSD and USDCAD have similarly been in range mode seeing good two-way business

Canadian CPI and retails the only data of note to come but there's more to play out before this week draws to a close