Forex news and trading headlines 9 Jan 2016
News:
- US Fed's Williams: Short-term fiscal stimulus not needed
- Pound on slippery slope again as yen jumps into the drivers seat - May spokeswoman gets the fire extinguisher out
- GBPUSD drops through 1.2200 to post new session lows
- President elect Trump starts the week with a celebrity quiz #GettingTrumped
- Germany and Frankfurt could benefit as a financial hub post-Brexit
- SNB expects FY 2016 consolidated profits of CHF 24bln
- Greece is looking for ways to speed up the bailout review
- USDJPY tests support into 116.50-80 after failing on latest rally
- EURUSD rolls back towards the 1.0500 area
Data:
- November 2016 Eurozone unemployment rate 9.8% vs 9.8% exp
- Germany November trade balance EUR +22.6bln vs +20.3bln exp
- Germany November industrial production mm SA +0.4% vs +0.6% exp
- January 2017 Eurozone Sentix index 18.2 vs 12.5 exp
- Italy November unemployment rate flash 11.9% vs 11.6% exp
- UK December Halifax house price index mm +1.7% vs +0.3% exp
- Switzerland November retail sales yy +0.9% vs -0.7% prev
- Bank of France December business sentiment 102 vs 101 exp
The GBP selling started in Asia after some bearish comments re hard-Brexit from May and others over the weekend and European desks were quick to give it all another slap lower.
Asia had taken GBPDOWN a little to 1.2240 after opening below 1.2280 and it wasn't long before 1.2200 was breaking to post 1.2180 in rapid time. Failure to rally back above 1.2200 was the signal that European desks needed to slap it lower and with GBPJPY once again a prime mover we've seen 1.2124 and 141.82 from 143.50
That move saw USDJPY capped at 117.53 and retreat to 116.63 and other core pairs have also topped out on the general yen demand with EURUSD falling to 1.0511 and AUDUSD struggling to make gains over 0.7330 again.
EURGBP was a rapid riser on the pound pressure and made its way steadily from 0.8630 to 0.8680 before running into fresh supply helping GBPUSD recover to 1.2181.
Oil has been in steady retreat for much of the session and that's helped USDCAD up to 1.3278 while equities have been soggy although the FTSE has suffered less due to the lower GBPUSD .
UK and EZ data have had little impact and there's not much to shout about coming from across the pond to follow but we do have the Canadian BOC business outlook and a couple of Fed talking-heads
