Forex news and economic data headlines 6 October 2016
News:
- Germany's Gabriel says Brexit negotiation goal should be keeping UK as close to EU as possible
- Merkel says German economy is in good shape
- More from Merkel: Brexit talks will not be easy
Has Merkel offered May a chink of light to market access?
BOJ's Kuroda says they don't expect to run out of JGBs to purchase for QE
Japan's Aso says G7 and G20 have agreed to avoid FX competition
- ECB's Liikanen says current low interest rates and policy measures are necessary
- UK government prop up housing market with £2bn fund to buy unsold homes - Livesquawk
- Singapore's MAS to keep monetary policy on hold next week - Reuters poll
What is it going to take to move the euro?
- USDJPY underpinned but sellers lurking again
CHF buyers send USDCHF tumbling to test 0.9750
Option expiries for the 10 am NY cut today 6 Oct
- Nikkei 225 closes up +0.47% at 16,899.10
Data:
Q2 2016 UK unit labour costs 1.9% vs 1.9% prior y/y
Germany factory orders Aug mm 1.0% vs +0.3% exp
- Switzerland CPI Sept mm +0.1% vs +0.2% exp
A relatively subdued session by recent standards but still offering good two-way opportunity.
With tomorrow's Non-Farm Payrolls looming ever larger we've seen a bit of position squaring and tighter ranges than of late but the bias has been USD-positive led by USDJPY which has continued its journey north to post 103.74
Another round of Japanese exporter supply between 103.80-104.00 has capped the move so far but that hasn't stopped other pairs from feeling the pinch with EURUSD posting 1.1178, AUDUSD 0.7574,USDCAD 1.3210 and GBPUSD 1.2688.
EURGBP selling to 0.8795 earlier saw that latter pair jump from the lows to post 1.2732 before running into fresh sellers and we're now seeing 0.8826 and 1.2678 as I type.
Equities opened a little firmer but have turned negative while oil has mostly been underpinned without making much of an advance higher.
Not a lot on the horizon data wise but that won't stop these markets continue to dance on increasingly hot coals.
