Forex news and economic trading headlines 14 July 2016
News:
- BOE Minutes: Most MPC see policy loosening in August
- BOE leaves bank rate on hold at 0.5%
- UK's Hammond says there will be no emergency budget
- UK's Hammond says he will work closely with BOE to produce the Autumn statement
- More from Hammond: We will need a plan to bring budget deficit down
- ONS says UK data scheduling changes planned from Jan 2017
- Germany's Schaeuble must make sure the Brexit decision is "mostly positive"
- Japan's Honda says the idea of perpetual bonds was discussed with Bernanke in April
- Japan will not be resorting to helicopter money via perpetual bonds any time soon
- Japan's Hamada repeats that Bernanke made no mention of helicopter money to Abe this week
- Option expiries 10 am NY cut today 14 July
- Nikkei 225 closes up +0.95% at 16,385.89
Data:
- None of note
A lively session from the start as the yen weakened on more talk (and denials) of Japan introducing helicopter money.
USDJPY surged to 105.30 then 105.75 finally stalling at 105.93 before finding support back around 105.30. Yen pairs enjoyed a similar ride playing out on core pairs too.
GBPUSD rallied on the GBPJPY demand but found sellers around 1.3230-40 as expectations of a BOE rate cut continued. The actual fact of rates on hold sent the pound flying higher with GBPUSD posting 1.3480 and EURGBP 0.8250 but as per my preview we saw GBP sellers quick to pounce helped the news that most MPC expected policy loosening in Aug. Same pattern seen in pound pairs. GBPUSD plummeted as fast back to 1.3320 with other GBP pairs following suit.
EURUSD found itself caught in the cross play cross fire but has now seen a spike higher above 1.1150 helped by EURGBP and EURJPY demand.EURCHF has not gone with it and USDCHF has fallen to 0.9764 suggesting no SNB presence for the moment but they wont' be far away
AUD and CAD have enjoyed the yen selling but the NZD has become the runt of the litter.
US initial jobless claims at 12.30 GMT the next data risk event having had nothing of note so far but that hasn't stopped the market from having a real ball this morning.
