Forex news and economic headlines 4 April 2016
News:
- ECB's Praet ECB measures are not uncontroversial
- EU says Greece has to fully implement terms of the August accord
- Germany and the IMF will not be divided on Greece
- New Zealand's Key says Yellen doesn't see great pressure to raise rates at the moment
- UK trade unions to hold emergency talks today over steel crisis
- France's Hollande says Panama Papers are welcome news for tax revenues
- Heads-up for CAD traders: BOC gov Poloz up to the rostrum later today
- Option expiries 10am NY cut today 4 April
- Nikkei 225 closes down -0.25% at 16,123.27
Data:
- March 2016 UK Markit CIPS construction PMI 54.2 vs 54.0 exp
- February 2016 Eurozone unemployment rate 10.3% vs 10.3% exp
- February 2016 Eurozone PPI -0.7% vs -0.5% exp m/m
- April 2016 Eurozone Sentix index 5.7 vs 6.8 exp
- German engineering orders Feb yy +7.0% -VDMA
- Italian 2015 public deficit to GDP ratio year-to-date +2.6% vs +2.7% prev
After the fun and games of NFP Friday it's been an understandably more sedate affair as another week gets underway.
The session began with USDJPY on the back foot with a softer Nikkei but both pared losses into the close.EURJPY demand at 126.70 helped to give EURUSD a lift up to test 1.1400 and EURGBP to have another look at 0.8020 but failure once again to breach these levels gave euro sellers a good enough reason to jump back. Greek bailout headlines returning to the front pages and firmer equity markets added to the pressure to sell to either go short or take profit.
The euro selling has seen EURUSD post 1.1357, EURGBP test 0.7980 support which has in turn put a bid under cable at 1.4200 but failing to breach offers at 1.4250.
USDJPY has now climbed to post session of 111.74 but capped by fresh supply at 111.80 while USDCHF has also nudged its way up to 0.9615 as EURUSD drifted lower with EURCHF anchored.
USDCAD rallied to 1.3080 from 1.3040 as oil drifted lower but then fell back below 1.3050 as oil rallied. AUDUSD and NZDUSD both mostly had the morning off.
US factory orders out at 14.00 GMT the data highlight but we have a couple of CB talking heads too.
