XE Market Analysis: Europe – Oct 19, 2015

Above-forecast China GDP has only had a muted impact on currencies so far, as it has consequentially tempered expectations for large scale stimulus out of Beijing. This is perhaps a paradoxical reaction, reversing the equally paradoxical ‘bad news is good news’ theme that had been underpinning a risk-on sentiment in markets recently. The AUD, the principle forex market proxy for market views on China, is showing a 0.4% gain versus the USD on pre-data levels. The other dollar bloc currencies haven’t shown much reaction, and Asian currencies haven’t been moved much either.