Forex news and economic trading headlines 22 March 2016
- Belgium says it's too early to give number of victims from terror attacks
- BOE's Carney: Bank needs to do much more in diversity
- Another explosion reported in Belgium - Livesquawk
- Markets settle but remain on tenter hooks after Belgium attacks
- March 2016 German ZEW economic sentiment 4.3 vs 5.0
- Shots fired at Brussels airport
- February 2016 UK PSNB 6.485bn vs 5.250bn exp
- February 2016 UK CPI 0.3% vs 0.4% exp y/y
- March 2016 German IFO business climate 106.7 vs 106.0 exp
- March 2016 Eurozone Markit manufacturing PMI flash 51.4 vs 51.4 exp
- Explosions at 3 Brussels metro stops now being reported
- March 2016 German Markit/BME manufacturing PMI flash 50.4 vs 50.8 exp
- Explosions now reported at Brussels metro station close to EU buildings
- Stocks down at the open following Belgian airport attack
- March 2016 French Markit manufacturing PMI flash 49.6 vs 50.2 exp
- Several people reported dead now after Belgian airport explosion
- China has plenty of tools to manage capital flows says SAFE's Wang
- Brussels explosions at American Airlines check in desk
- Capital outflows have eased significantly recently says China's SAFE
- February 2016 Swiss trade balance 4.07bn vs 3.51bn prior
- Japan's Aso says the upward trend in wages remains intact
- Forex option expiries for the 10am (14.00GMT) New York cut 22 March 2016
- Nikkei closes +1.94% at 17048
- AUD may be getting a ahead of itself says RBA's Stevens
- What's data is going to rock our world today?
- RBA's Stevens says there's more room to ease policy than most
- Japanese supermarket sales rose 3.4% y/y in Feb
The Belgium news has obviously overridden everything else in markets today. Currencies were not doing much until the first headlines hit. At first it wasn't a big move, just the majors like cable and the euro losing 20/25 pips while the yen and USD gained them. As the news unfolded further and the magnitude became clear, the moves accelerated. The yen and US dollar became the beneficiaries of flows out of Europe. This safe haven move is different from economic safe haven moves, which would normally see euro demand. Global events like this become geographical in terms of flows.
Markets have calmed now but tensions remain elevated. A bounce back might happen but it will only take one errant headline to tip things again.
It's worth taking a cautious tone until the US opens and we'll see what the reaction is over there. Expect markets to remain jittery for a few days now.
The thoughts from all of us at ForexLive are with the victims of the attacks today, and of other lesser reported attacks that continue to happen around the world.
Peace to all our readers wherever you are.
