Forex news from the European session 20 Oct

News:

  • ECB's Linde says they can extend QE programme if needed
  • BOE's McCafferty says gradual rate hike path justifies hike sooner rather than later
  • More from McCafferty: Rate hike depends on UK economy not US Fed
  • Germany's Schaeuble says he had big support for his temporary Grexit plan
  • Italy's Padoan says the priority is employment
  • Preview: Global Dairy Trade auction today
  • Yes folks, it's the Ryan Littlestone Show on Tip TV again
  • Option expiries 10am NY cut today 20 Oct

Data:

  • Germany PPI Sept mm -0.4% vs -0.2% exp
  • Eurozone current account balance Aug SA €+17.7 bln vs +25.6bln prev
  • Switzerland trade balance Sept CHF +3.05bln vs +3.27bln exp
  • Japan machine tool orders Sept final yy -19.1% as expected
  • Nikkei 225 closes up +0.42% at 18,207.15

It's been a busy session after a slow Asia and European start, and one that's seen a a bit of love return for the euro on fading fears of ECB easing and with equity markets turning lower again

EURUSD has taken out good offers/res at 1.1350-55 to post 1.1387 so far after trawling around 1.1330. EURGBP has been dragged through 0.7335 and 0.7350 to post 0.7357 while EURJPY has surged to 136.22 after a GBPJPY buy order triggered stop-loss buying across the board

That order initially lifted GBPUSD to 1.5507 from 1.5475 and USDJPY from 119.45 to 119.78 but we've seen good selling interest in both since

USDCHF has fallen below 0.9500 from 0.9560 as EURUSD rises with EURCHF in demand too above 1.0800

The Canadians have a new PM and we've seen USDCAD in gradual retreat from 1.3020 to 1.2980 support area while early AUDJPY buying saw AUDUSD up to test 0.7300 again before capping NZDUSD has had a good morning too taking advantage of the general mood to post 0.6847 from 0.6800

US housing data coming up later then a few Fed talking heads including Yellen to provide further impetus to proceedings