Forex news and economic trading headlines 11 July 2016
News:
- Abe confirms he has instructed govt to compile economic stimulus package
- Yen pairs all enjoying extra stimulus from news of, er, the extra stimulus
- USDJPY edges into 102.00 with Abe set to open the purse strings
- If the pound is selling off on high expectations of BOE action this week then I'm a buyer
- PM Cameron says UK facing massive productivity challenge
- The UK government cannot be defined by an EU exit says May
- The Brexit fallout continues with UK PM candidate Leadsom likely to step down
- Futures market points to further SNB rate cut by September
- Sapin maintains French 2016 GDP forecast at +1.5% despite Brexit
- Nikkei 225 closes up +3.98% at 15,708.82
- Option expiries 10 am NY cut today 11 July
Data:
- China vehicle sales June yy +14.8% vs +9.8% prev
- Italy industrial production May mm -0.6% vs +0.1% exp
- Bank of France mftg climate June indicator 97 as previous
- Japan machine tool orders June yy flash -19.9% vs -24.7% prev
It was all about the yen early in the session but like a spoilt child the pound stamped its feet and demanded attention.
Confirmation that Abe has instructed his govt to compile an extra stimulus package sent the Nikkei and yen pairs higher still after some movement in late Asia. USDJPY finally broke through 101.50 lifting yen pairs/core pairs with it and then pushing on through 102.00 as general USD-demand prevailed.
That demand pushed GBPUSD down through 1.2900 from the early rally to 1.2981 on GBPJPY demand and we've been down to test 1.2850. Talk of May winning the UK PM contest by default gave the pound a lift across the board and we've been back up toward 1.3000 again.
EURUSD has had another mixed session pulled around by cross plays and therefore in relative tight range while USDCHF enjoyed the USD demand before running into resistance/offers at 0.9860.
USDCAD rallied to test 1.3100 but similarly has retreated while AUDUSD and NZDUSD enjoyed some support from the yen selling but still found itself on the back-foot.
A roller coaster morning with plenty more to look forward to as the week pans out.
