Forex trading news and economic data headlines for the European session 24 June 2016
News:
- Official declaration confirms UK Brexit decision
- UK PM Cameron says he is stepping down, but not just yet
- PM Cameron says he wants to reassure markets and investors that UK economy is fundamentally strong
- UK's Brexit boy Boris says a glorious opportunity awaits
- Scotland's Sturgeon they face prospect of being taken out of EU against her will
- Cameron stepping down highlights why the UK will struggle to deal with Brexit
- BOE's Carney says they will not hesitate to take measures as required
- BOE says it will take all necessary steps to meet its responsibilities
- ECB ready to provide liquidity in euros and other currencies
- ECB not convening the Governing Council just yet
- ECB's Nowotny: We have hundreds of millions of euros to use
- G7 central banks and finance ministers to hold conference call today
- SNB definitely have their fingers all over the intervention button
- BOJ statement on Brexit vote - ready to provide sufficient liquidity
- Europe parliament chief Schultz - Says Britain chosen very difficult path
- EU say they're ready to launch negotiations with Britain swiftly
- Eurogroup head Dijsselbloem says Europe is not in panic
- Moody's says Brexit will weigh on UK's economic and financial performance
- Latest global reaction to UK voting for Brexit
- Trump lands in Scotland and could get a Glasgow kiss
- Japan finance minister Aso: Will respond as needed in FX mkt
- Japan's Abe says markets must be stabilized
- Bull market in knife sharpeners - Cuts coming up from central banks
- Russian central bank says they have enough tools to deal with Brexit-based uncertainty
- Sth Korea's fin min says working closely with Japan, China to ensure global stability
- Japan economy minister Ishihara: Fin mkt moves have rough since this morning
- Trading fundamentals is my life. Days like today are what I live for.
- After Brexit what now for the UK make-up?
- Morgan Stanley say GBP/USD heading to 1.25 / 1 .30 after leave vote
- Brexit fallout - SocGen says GBP to stabilise 1.30 - 1.35 for the moment, then down
- ANZ see potential now for PBOC to cut RRR after Brexit vote
- Goldman Sachs expects Bank of England to cut rates 25bp in August
- Pricing for RBA July rate cut above 50%
- Option expiries 10 am NY cut today 24 June
Data:
- France Q1 GDP final +0.6% as exp/flash
- Germany IFO business climate June 108.7 vs 107.5 exp
- UK BBA mortgage approvals May 42,187 vs 37,850 exp
Phew, there's your headlines. Summary to follow once I've had more fingers grafted on.
The really wild moves happened in the Asian trading time although with all of us doing extended shifts it's all morphed into long session tbh
Since Europe came in though we seen a relatively more stable session with a number of central banks and politicians all chipping in with tones of assurance and that gave markets some markets some comfort.
We knew the Brexit outcome as Asian trading came to an end and we saw GBPUSD climb from 1.3220 to test 1.4000 on the over-extended move before failing again and then getting a further push back down to 1.3685 as talk of another Scottish independence referendum resurfaced.
EURGBP fell back through 0.8000 from 0.8320 highs before then rallying again to 0.8067 as I type and we saw a similar pattern to other GBP pairs.
The original clamour for safe-havens saw USDJPY tumble to 98.97 before retracing above 103.00 only to run into fresh supply at 104.00. Plenty of CB chatter but no action from any of them apart from our regular smoothers the SNB who declined to comment to start with then proceeded to drive USDCHF up to 0.9808 and EURCHF back above 1.0850 from 1.0623 but moves have been faded since.
CAD,AUD and NZD all got slapped in Asia as yen-pair selling accelerated but have all seen moves reverse to varying extent in the European session.
Equities all opened lower and fell further with most down over 8% before the relatively ship-settling rhetoric/measures proposed by the CB lent some sort of order.
It was always going to be wild whatever the referendum outcome but we should expect markets to take a long while yet to recover some poise.
