Forex news and economic data headlines 6 July 2016
US MBA mortgage applications 14.2% vs -2.6% prior
Barcelona's Lionel Messi sentenced to 21 months in jail for tax dodging
Schaeuble: Brexit vote hasn't changed the economic conditions in Germany
PBOC sets RRR at 20% for Offshore yuan forwards
Just when you thought a risk bounce was on the cards...
There are no immediate plans to support Monte Paschi - Italian official
Forex market orders 6 July 206
It is too early to measure the Brexit impact on European stability and recovery says ECB's Linde
June 2016 German Markit construction PMI 50.4 vs 52.7 prior
ECB's Villeroy: Priority must be dealing with Brexit
May 2016 Spanish industrial production -0.5% vs 0.0% exp m/m
Abe can hit 2.0% inflation with ¥20tn stimulus says adviser Fujii
UK Business minister calls for emergency corporate and income tax cuts
May 2016 German factory orders 0.0% vs 1.0% ex m/m
Anyone ready to catch the GBP falling knife yet? European session trade ideas thread 6 July 2016
The EU is going in the wrong direction say the French
Europe awoke to the pound getting another going over as it smashed through the 1985 levels to 1.2798. Pretty much everything else was following. That blowout seemed to clear the decks somewhat and we spent most of the morning trying to patch things up. GBPUSD wandered up to 1.30 and found sellers lurking like a kid playing Whack-a-mole. The quid got malleted down to 1.2920 but bounced once again to break 1.3000 to 1.3015. Maybe the kid was off getting more change because he's since come back and knocked it down to 1.2971.
USDJPY also found a bottom around 100.50/55, and then a top at 101.25. We've undone all of that to post a low of 100.20 and we've just seen a quick bounce to 101.60. The yen became everyone's favoured currency as the mood turned sour across stocks and commods. Plenty of money is still finding a home in bonds.
EURUSD has been relatively quiet is a rough 40 pip range between the low at 1.1036 and the high at 1.1079. EURGBP is out of energy after cracking 0.8600 and is now trying to stay above 0.8500
AUDUSD looked to be on its merry way south until 0.7400 played hardball and we slowly ran back up to 0.7485. There's some indications from down under that the election might finally be counted and Turnbull's coalition may be ahead.
European stocks have taken a battering with banks in the frame once again. Oil is distancing itself from the 50 buck mark by an ever increasing margin, and that's not helping sentiment either.
US services PMI and the ISM non-manufacturing PMI light up the US calendar ahead of the FOMC minutes. Around 15.30 GMT the Economics Club of Canada will be weighing into the Brexit debate with a discussion on "What happens next?". Should be fun ;-)
