Forex news from the European morning session 29 Sept

News:

  • RBI cuts repo rate to 6.75% from 7.25%
  • RBI's Rajan says he doesn't think they were "excessively aggressive"
  • ECB's Nowotny: Full monetary union is needed for euro area
  • Italy's Renzi says growth could exceed forecasts
  • Australian press: RBA under pressure to cut rates
  • Preview: UK GDP Q2 final revisions Wednesday 30 Sept
  • Option expiries 10am NY cut today 29 Sept

Data:

  • September 2015 Eurozone economic sentiment 105.6 vs 104.1 exp
  • German import price index Aug mm -1.5% vs -1.4% exp
  • Spain CPI Sept mm flash -0.3% vs +0.1% exp
  • Saxony CPI Sept mm -0.1% as exp
  • Brandenburg CPI Sept mm -0.2% as prev
  • Baden-Wuerttemberg CPI Sept mm -0.2% vs +0.0% prev
  • Bavaria CPI Sept mm -0.2% vs +0.1% prev
  • North Rhine Westphalia CPI Sept mm -0.2% vs +0.1%
  • August 2015 UK BOE consumer credit 0.860bn vs 1.200bn exp
  • September 2015 UK distributive trade sales 49 vs 28 exp
  • Japan small business confidence Sept 49.0 vs 48.3 exp
  • Nikkei 225 closes down 4.05% at 16,930.84

A turnaround in European equity markets as Glencore posted gains saw the euro lose its appeal

Asian equity markets had another bad day and that drove USDJPY lower below 119.40 and EURUSD higher to 1.1281 but a better showing from Glencore calmed market nerves and a reversal was soon in progress

EURUSD has been back down to 1.1219 and EURGBP to 0.7381 after posting 0.7437 earlier. EURJPY had found support at 134.50 and with USDJPY advancing back toward 120.00 we saw the pair rise to test 135.00 again

GBPUSD found support into 1.5150 again and found demand from the EURGBP fall to test offers/res around 1.5200 only to give up as EURGBP demand around 0.7385 provided some decent GBP supply

AUDUSD enjoyed an early rally helped by EURAUD selling and we saw 0.6983 posted from 0.6940 while NZDUSD found support into 0.6300 and has since posted 0.6347

USDCAD has traded tightly with demand at 1.3400 and supply around 1.3430 Plenty more action to come with equity markets remaining in focus and BOE gov Carney speaking later at 19.15 GMT