Forex news and economic data headlines 9 September 2016
News:
- Yen weakens on reports of BOJ considering further rate cuts
- BOJ may use combination of existing policy tools and offer clearer forward guidance
- Eurogroup's Dijsselbloem says UK has to make its mind up to start Brexit process
- ECB's Nowotny says monetary policy in need of additional measures
- ECB's Rimsevic: Brexit vote hasn't substantially affected the mood of Eurozone businessmen - Livesquawk
- North Korea say nuclear test was in response to threats and sanctions by hostile elements
- Obama says provocative actions by North Korea will be met with "serious consequences"
- Iran tells OPEC it produced 3.63mln bpd of crude oil in August
- Germany's Schaeuble payment can be made to Greece after it meets conditions
- ECB's Coeure: Economy is resilient to global uncertainty
- UK inflation to rise in the short term says BOE survey
- Large option expiries casting a shadow over EURUSD
- Option expiries 10 am NY cut today 9 Sept
- Nikkei 225 closes up +0.04% at 16,965.76
Data:
- UK visible trade balance July GBP -11.764bln vs -11.65bln exp
- July 2016 UK construction output 0.0% vs -0.8% exp m/m
- Germany trade balance July EUR +19.5bln vs +23.7bln exp
- France industrial production July mm -0.6% vs +0.3% exp
- Switzerland unemployment rate Aug SA 3.4% vs 3.3% exp
- Japan tertiary industry index July mm +0.3% vs +0.4% exp
A largely subdued session with the euro underpinned with large option expiries casting a shadow but then yen pairs springing into life on BOJ rate cut talk.
USDJPY opened near Asian lows around 102.00 supported by option-led demand and trawled mostly around 102.20 before the Kyodo report sent yen pairs heading higher. USDJPY jumped to 102.70 in a rush with GBPJPY up to 136.80 and putting a bid under GBPUSD which has survived a couple of visits below 1.3300
EURUSD found itself hemmed into a 1.1260-80 range with large option expiries at 1.1250 and 1.1300 providing the outside limits and this in turn has kept EURGBP also tightly bound.
Commodity currencies have been on the back foot again on softer prices and that's seen USDCAD up to 1.2967, AUDUSD down to 0.7590 and NZDUSD to 0.7363.
EURCHF still reflecting underlying euro demand and SNB ever-present threat of intervention to weaken the franc when considered necessary.
US Fed's Rosengreen speaking shortly then data wise we have Canadian jobs and housing reports to throw in the mix.
