LONDON (SHARECAST) - This is a review of the elements likely to affect foreign exchange (forex) trading in the European session:
QE3 - Third phase of quantitative easing
IMF - International Monetary Fund; BOE - Bank of England
Cable: Sterling/US dollar
Currency codes: EUR - euro; USD - US dollar; GBP - sterling; JPY - Japanese yen; CHF - Swiss franc; NOK - Norwegian kroner; SEK - Swedish kroner; CAD - Canadian dollar (the loonie); AUD - Australian dollar; NZD - New Zealand dollar
IMF Sees European Banks Facing $4.5 Trillion Sell-Off - Bloomberg
Yellen Says If Fed QE Boosts US Growth Then World Will Benefit - Bloomberg
China Money Rate Drops as Central Bank Adds Funds - Bloomberg
Middle East Could Steal Focus From Growth Concerns - CNBC
NATO plans to back Turkey over Syria spillover - Reuters
S&P sees lower 2013 growth for US state and local governments - Reuters
Dollar to Gain on Stronger US Growth, FX Concepts’ Taylor Says - Bloomberg
Wall Street Pay Remains High Even as Jobs Shrink - CNBC
Facebook Fought SEC to Keep Mobile Risks Hidden Before IPO - Bloomberg
Alcoa Kicks Off Earnings Season With a Beat - CNBC
Alcoa Cuts Global Aluminium Forecast on China Slowdown - Bloomberg
Asian Stocks Drop as China Slowdown Weighs on Earnings - Bloomberg
China injects Rmb265bn into money markets - FT
Top China delegate pulls out of IMF meet amid islands row - Reuters
Japan and South Korea cut currency swap - FT
Leaving the Chaebol - WSJ
Singapore May Ease Currency Gain as Growth Slows - Bloomberg
Australia Sells $3.3 Billion of Longest Debt in 3 Decades - Bloomberg
‘Titanic’ Defaults Loom on Restructured India Bank Debt - Bloomberg
Indonesian Anti-Graft Agency to Investigate Police - WSJ
Lenovo Bets Convertible Tablet Can Win Share From Apple - Bloomberg
IMF warns eurozone on capital flight - FT
Financial transaction tax gains approval - FT
Euro slips near 200-day average as risk sentiment hurt - Reuters
EU treaty sails through French parliament - FT
Angry Greeks protest Merkel visit - Reuters
Samaras Bolstered as Greece Aims to Wrap Up Troika Talks - Bloomberg
SNB's Jordan: Euro/franc floor at 1.20 is right policy for now - Reuters
King signals inflation not primary focus - FT
FSA eases bank rules to boost lending - FT
EADS, BAE fight odds to save merger - Reuters
European Forex preview
EUR: The euro cross-rates continue to consolidate after the gloomy figures from the latest IMF’s World Economic Outlook. The Eurozone continues to be the main threat to financial stability according to IMF economists. EUR-USD has broken the 1.2900 support zone and is heading towards 1.2850. EUR-JPY holds above 100 close to 100.60.
GBP: The sterling crosses are still in book squaring mood. Cable trades a tad below 1.6000 while GBP-JPY is close to 125.00. EUR-GBP is under 0.8050. Weak industrial production numbers released yesterday in the UK had a negative impact on the sterling. BOE governor King has signalled that inflation is not their primary focus.
CHF: The Swiss franc shows signs of weakness against the US dollar. USD-CHF has breached the 0.9400 resistance zone. Meanwhile EUR-CHF trades close to 1.2100 after SNB president remarks. Thomas Jordan has said that the euro/franc floor at 1.20 is the right policy for now.
Nordics: The Swedish krona and the Norwegian kroner shrug-off recent losses. Renewed risk-aversion related to European debt problems help to abate growing signs of some sort of contagion effect from South to Northern Europe. EUR-SEK moves well above 8.60 and EUR-NOK is still below 7.40.
USD & JPY: The US dollar and the Japanese yen are well bid under a new volatility spike. Under a data-shy calendar in the US all the attention will be focused on the Fed’s Beige Book. USD-JPY trades sideways pivoting in the 78.30 area.
CAD, AUD & NZD: The three dollars show today diverse trading patterns. Yesterday they all rallied in synch after a new record liquidity providing injection by the People's Bank of China. AUD-USD is still trading close to the 1.02 support zone.