Forex news and economic headlines 13 April 2016
News:
- BOJ's Harada says they have several combinations to ease policy if needed
- More from Harada: Difficult to determine what currency level reflects fundamentals
- Japan's Yamamoto says BOJ should increase JGB buys by JPY 10trln approximately
- ECB's Knot says the ECB is in new territory with monetary policy
- I worry about accidents when interest rates rise says ECB's Knot
- OPEC cuts 2016 global oil demand growth by 50k bpd to 1.2m bpd
- BOE: Lenders report funding levels increased in Q1
- BOE credit review shows planned lending to households at fastest rate since Q3 2O14
- German institutes lower growth forecasts
- Greek think-tank IOBE expects economy to stay in recession this year
- Yen sellers prevailing adding support to core pairs
- Can USDJPY hit 110.00?
- Advance warning that the Asia session coverage might be getting a little weirder
- Option expiries 10am NY cut today 13 April
- Nikkei 225 closes up +2.84% at 16,381.22
Data:
- February 2016 Eurozone industrial production -0.8% vs -0.7% exp m/m
It's been all about the yen again but with European equity markets rallying in fine style we've seen the euro under renewed pressure.
Yen demand was the early theme as USDJPY stalled at 109.00 and that saw yen-pairs in retreat too, but then came support in the dips with USDJPY holding 108.80, EURJPY 123.30 and AUDJPY 83.30.
Rallies in core pairs then followed with USDJPY posting 109.30 but EURUSD was soon in retreat again as European equities followed on from strong Asian market gains and that sent the euro lower as the funding-ccy correlation returned.
EURUSD has been down to test 1.1300 from 1.1360, EURGBP to 0.7925 from 0.7983 and EURJPY back to 123.40 after failing into 124.00
General USD demand prevailed and that sent GBPUSD down to test 1.4200 again but rebounding into 1.4250 as EURGBP fell.
AUDUSD enjoyed the AUDJPY ride higher but both found early sellers with 0.7700 having large option expiries seemingly putting a cap on and we've been 0.7645-75 since for the most part. USDCHF has shadowed EURUSD and climbed to 0.9634 as EURCHF remains underpinned.
IUSDCAD has been pulled around by oil price again and found support at 1.2750 as oil price capped but focus remains on the BOC interest rate decision at 14.00 GMT.
NZDUSD has been in retreat after the heady rally yesterday but still finding demand around 0.6900.
Gold has been in steady decline from $1253 to $1240 as risk-off sentiment prevailed.
US retail sales and PPI data next up at 12.30 GMT
