ForexLive news, data and headlines wrap for the European session 6 March 2015
The data
- Q4 2014 eurozone GDP revision 0.3% vs 0.3% exp q/q
- January 2015 German industrial production SA 0.6% vs 0.5% exp m/m
- January 2015 Italian PPI -1.6% vs -0.7% prior m/m
- January 2015 Spanish industrial production +0.4% vs -0.3% exp y/y SA
- January 2015 French trade balance -3.726bn vs -3.0bn exp
- February 2015 Swiss HICP -0.4% vs 0.0% exp y/y
- February 2015 Bank of England GFK 12m inflation 1.9% vs 2.5% prior
- February 2015 Australia foreign reserves 64.3bn vs 62.5bn prior
- Japan's January 2015 leading index falls to 105.1 from 105.6 prior
The headlines
- Those irritating Greeks need to pay back all loans in full says Regling
- Fed's Williams says to expect 25bps rate rises but not at every meeting
- If Europe and Japan pulled their fingers out US GDP forecast would be closer to 4.0% - Fed's Williams
- SNB reports CHF 38.3bn profits for 2014
- EURUSD falls through 1.1000 GBPUSD heads towards 1.5200
- GBPUSD hits first line of support through 1.5200
- European bond yields still falling in the wake of Draghi and QE
The hours after Draghi were just a pause for breath as the selling quickly got underway in both the pound and the euro.
GBP/USD was the first to fall out of bed and it continued the slide from overnight highs at 1.5250 to hit 1.5160 as the session ends. There's been no real catalyst for the move save selling also in the yen cross and that's much the same for the euro too.
EUR/USD managed to cling on to the overnight levels a bit better than cable but not even a slight improvement in Industrial production data from Germany and Spain could keep it afloat. We've had the selling coming in waves and the dip through 1.1000 had a last line if defence at 1.0980. That counted for nothing and the break through has seen the euro hit a tech air pocket down to 1.0930. There's been no let up in the selling and you can even call a move up a bounce. The shorts have this one well and truly by the short and curlies.
European bond yields were falling again after the QE news yesterday and maybe a big reason for the move south in the currency is that bond longs are taking some profits as the buyers rush in and are moving funds elsewhere, particularly the dollar. European stocks are up but only fractionally so it doesn't look like flows are heading there.
USD/JPY is still asleep with nothing more than a 25 pip range all session. No doubt one eye is on the upcoming NFP data but even then it looks like it's going to take something special to kick this into gear
AUD/USD hasn't broken any record but is up above 0.7800 but in a tight range
Non-farm payrolls are the big number on the docket today and the all important earnings numbers are going to be more in focus than the actual payrolls number (unless we get a wild variation)
