Forex news and economic data wrap 16 September 2016
News:
- UK Johnson says Brexit talks are likely to start early in 2017
- BOE's Forbes: Pound depreciation since Brexit vote is causing adjustment in the current account
- BOE's Carney: Bank is supporting jobs and wages - Livesquawk
- GBPUSD slips below yesterday's low as USD buying steps up
- Kocherlakota: The Fed is about to make a mistake
- BOJ to keep very easy monetary conditions to support economic recovery
- Abe adviser Nishimura says benefits of BOJ's negative rate policy are "very big"
- ECB's Jazbec says policy is working, no need to change it now
- Here's the most shocking headline of the day. It's terrible, a complete surprise
- Option expiries for the 10 am NY cut today 16 Sept
- Nikkei 225 closes up +0.70% at 16,519.29
Data:
- Q2 2016 Eurozone wages 0.9% vs 1.8% prior y/y
- Italy July trade balance total EUR +7.795bln vs +4.661bln prev
- Spain Q2 labour costs yy -0.1% vs -0.2% prev
A busy little session lacking in data but with equities falling again we've seen some risk-off sentiment in play again.
Equities started off with softer tones and have extended losses all session and that's capped USDJPY above 102.00 as yen demand returns and we've seen lows of 101.78 so far.
That yen demand has seen GBPJPY selling put the pound under pressure again with cable falling to 1.3160 from 1.3235 helped by EURGBP demand to 0.8528 from 0.8490. EURUSD has large option expiries today between 1.1230-35 and that's containing the pair even though EURJPY supply has knocked it off its perch to post 1.1216.
USDCHF has maintained a bid tone as EURCHF remains underpinned while USDCAD has rallied steadily to 1.3212 from 1.3145 with oil falling constantly all morning.
AUDUSD and NZDUSD have both fallen on yen-pair selling but with limited impact.
US CPI and Michigan surveys the data of note to follow and we can expect a few more moves before the week is out.
