Forex news and economic trading headlines 25 August 2016
Sincere condolences to all affected by the Italian earthquake which has now claimed 240 lives
News:
- Jackson Hole: HSBC see Yellen in cautionary mode still
- Yellen to disappoint USD bulls at Jackson Hole - Citi
- USDJPY could hit 85.00 if BOJ policy hits the skids - Sumitomo
- Where will USDJPY finish up after Yellen at Jackson Hole?
- 60% of economists see the BOJ easing in September- Reuters poll
- Mr & Mrs Watanabe like eating out
- Cable tests 1.3200 again as EURGBP chews through offers into 0.8550
- South African PM Zuma says he has full confidence in fin min Gordhan
- Net migration to the UK fell in the year to March 2016
- Brexit has had a stronger effect on German business morale - IFO
- Forex option expiries for the 10am (14.00 GMT) New York cut 25 August 2016
- Nikkei closes down -0.25% at 16,555.95
Data:
- August 2016 German IFO business climate 106.2 vs 108.5 exp
- UK CBI retail reported sales Aug 9 vs -14 prev
- August 2016 France business confidence 101 vs 102 exp
- Q2 2016 Spain GDP final 0.8% vs 0.7% exp q/q
- Switzerland industrial and construction output Q2 yy WDA -1.6% vs +1.1% prev
All change on the euro front as falling equities have led to traders taking some money off the table and closing a few EUR shorts.
Funding-ccy correlations have seen the euro under pressure this week as equity markets rallied but now the reverse is true with the DAX falling over 1% on the session to post lows of 10470.73
EURGBP has once again led the way with a move to 0.8559 from 0.8520 and that's capped cable and pushed it down to 1.3197 as I type from 1.3235 as we opened up. That move was an add-on to the fall from 1.3260 in Asia as EURGBP found support at 0.8500 following the move to the 0.8485 target yesterday.
EURJPY has climbed steadily from 113.10 after failing a second time to break lower but there's offers between 113.50-60 capping for the moment while USDJPY has sell interest between 100.50-60.
EURUSD had survived an attempt on 1.1250 yesterday and now seen a solid rally from 1.1265 only to run into good sell interest at 1.1300 again.
Reversing yesterday's moves we've also seen EURAUD climb to 1.4834 and that's capped AUDUSD above 0.7630 to drift lower to 0.7614. Similarly EURNZD demand has seen NZDUSD down to 0.7308 from 0.7330.
USDCAD has found support into 1.2900 again to rally back as oil prices fall again but 1.2930 still presents the immediate top-side challenge.
US weekly jobless claims and durable goods out at 12.30 the next data risk.
