Forex news and economic data trading headlines 21 March 2016
Asia catch up: Forex news for Asia trading Monday 21 March 2016
- Bundesbank expects German economic momentum to ease in second quarter of 2016
- BOE's Forbes says there may be increased risk in the run up to EU referendum
- March 2016 UK CBI industrial trends orders -14 vs -14 exp
- ECB government drum banging increases in volume
- Morgan Stanley's trade of the week: Sell GBPUSD on political upheaval
- ECB's Constancio finds an excuse why monetary policy isn't working
- China's Minxin manufacturing PMI comes in at 43.6 for March
- ECB's Liikanen: New ECB measures will accelerate inflation and support Eurozone recovery
- January 2016 Eurozone current account balance 25.4bn vs 25.5bn prior
- Lacker: Recent inflation data suggests the upside has risen
- Fed's Lacker is reasonably confident that inflation will rise to 2%
- ECB cannot create growth by itself says Benoit Coeure
- Forex option expiries 21 March 2016
- China oil imports jump in Feb
- China sharpens the Shanghai property bubble pin
- Central bankers aplenty on today's events calendar
- UK political news: Iain Duncan Smith resignation could see the pound wobble early doors
Not much ink to be used in this wrap today. The pound was where most of the action was following a key member of David Cameron's government resigning over the weekend. There's probably still some fall out to come but the initial reaction trades have been done. There's probably small gap downs on charts of retail platforms that open for Asia. Mine show a gap from 1.4470 to 1.4455 odd. We sat above 1.4440 through the remainder of the Asia session and then the alarm clocks went off in Blighty and we started seeing cable wilt. Once traders had finished their train journeys into work and digested the morning news, the pound found itself busting stops under 1.4400 to 1.4375. That was as bad as it got and we bounced back to 1.4428 before mincing around between 1.4420 and 1.4400. As I type we're back below by 7 pips.
Unsurprisingly the pound was getting it across the board. EURGBP is pushing new highs at 0.78732 right now and is looking soft again vs the yen.
That was also a driver this morning as EURUSD also faded by around 50 pips from the Asia high as EURJPY fell. The recovery there to over Asia tops has helped the euro recover
Commodity currencies were looking a touch sorry for themselves today while oil drifted lower. That picked up by around a cent in Brent from the lows and FX followed. AUDUSD is up around 50 pips from the low and is finding resistance at 0.7625.
USDJPY has been virtually asleep in a 25 pip range around the mid 111's
