Forex news and economic data headlines 4 October 2016
News:
- UK's May says government will be ambitious in Brexit negotiations with EU
- Germany's Fuchs: Theresa May is underestimating EU's position in Brexit talks
- Pound fails to be too impressed by better PMI data
- Cable falls again to test 1.2750
- EURUSD holds 1.1150 but rallies weak still
- Option expiries for the 10 am NY cut today 4 Oct
- More option expiries of note over the next few days - Update 4 Oct
- Nikkei 225 closes up +0.83% at 16,735.65
Data:
- September 2016 UK Markit/CIPS Construction PMI 52.3 vs 49.0 exp
- August 2016 Eurozone PPI -0.2% vs -0.1% exp m/m
- Japan consumer confidence index Sept 43.0 vs 41.5 exp
- Australia commodity index SDR Sept yy +3.1% vs +0.3% prev
It's been another bad at the office for the pound but it's not the only one to have suffered as equities rally and USD demand prevails.
With a certain risk back on we saw USDJPY spike higher in Asia to 102.38 then test lower into 102.00 but it hasn't looked back since, albeit failing to get through strong exporter supply at 102.50
GBPJPY selling has also added weight and been down to 130.30 in a session that saw early-Europe take GBPUSD through strong demand into 1.2800 . The pair slipped quickly to 1.2775 before then triggering more stops through 1.2770 then wiping its feet at 1.2750 before finally hitting 1.2737
EURGBP has been up to test 3 years highs of 0.8766 and still looks underpinned. Overall the pound continues to slide as Brexit -based uncertainty continues.
EURUSD also fell through 1.1200 to test 1.1150 while USDCHF has needed little excuse to rally back through 0.9800 with EURCHF more than holding its own above 1.0900 following the SNB's intervention on Friday.
Oil has retreated a little from session highs but equities have just kept on going with the FTSE soaring to post 7110 as I type, a daily increase of 127 points, or +1.84% as lower GBP/firmer USD add to the buying frenzy.
USDCAD rallied from 1.3125 to 1.3175 on the oil dip but ran out of puff but AUDUSD has been solid above 0.7650 as gold/metals remain underpinned and the RBA left rates on hold.
Not a lot of data on the horizon but for NZD traders we have the GDT auction result to come
