Forex trading news and economic data headlines 7 July 2016
UK Parliament will have its say on article 50 but decision lies with the government
EU to make a statement on Spanish and Portuguese budget deficits at 14.00 GMT
Sweden's Democrate leader Akesson wants an EU referendum
BOJ confirm MOF and FSA meeting for tomorrow - Bloomberg
Brexit forecasts of a disaster for sterling have not proven correct says Leadsom
Over 31% of Eurozone sovereign debt is below ECB QE purchase threshold - Livesquawk
May 2016 UK industrial production -0.5% vs -1.0% exp m/m
French GDP will lose 0.1-0.2 percentage points due to Brexit says Budget minister
June 2016 UK Halifax house prices 1.3% vs 0.3% exp m/m
June 2016 Swiss CPI -0.4% vs -0.5% exp y/y
May 2016 French trade balance report -2.84bn vs -4.92bn exp
PBOC adviser says Chinese banks NPL ratio is being underestimated
May 2016 German industrial production -1.3% 0.0% exp m/m SA
Housing risks require broad policy response says RBNZ
Forex option expiries for the 10am (14.00GMT) New York cut 7July 2016
Germany expects 1.0% drop in 2016 exports to UK following Brexit vote
May 2016 Japan Leading index 100 vs 100 exp
Economic data due 7 July 2016
Australian election - Support for Turnbull announced by at least 1 independent
The quid was in a better place today as it came back from several attempts to knock it lower. The lows have been getting higher and buyers kept the pressure on taking it up towards 1.30 time and time again. We've finally seen that pressure break the big figure properly and it's been confirmed by support coming in ahead of 1.30 now. Option players were said to be buying earlier and with 1bn going off a the 1.30 strike later, there may be more twists and turns yet. It's only a small victory for the pound and doesn't change the bigger picture but for now, buyers are in control as we touch a new high at 1.3047.
One pair's cure is another one's poison and EURGBP is suffering on the other side. As I type 0.8500 is breaking and that will add further wind to GBPUSD's sails. In the middle is EURUSD which suffered a bout of softness in the early part of the session. German industrial production didn't help matter as we hit a 1.1057 low from a session high of 1.1107 but a mild sell off in yen pairs helped drag it back up. 1.1100 capped the bounce and we now languish around 1.1180.
The BOJ, MOF and FSA are getting together for a chinwag tomorrow and the market only has one thing on it's mind, intervention. We've been up nearly 60 pips from the 100.63 lows in USDJPY. The market isn't falling for it fully though and the likely outcome is more hogwash that they're watching, waiting and ready to smack the bums of naughty speculators. Good luck with that one.
AUDUSD has run into old resistive ground around 0.7525/40 and the buyers look intent on pushing it higher. Maybe they're waiting for the election count to be finished before having a go. Good luck with that one MKII.
ADP jobs is the key number today with the market still reeling after two bad NFP's. 159k is expected. The poo might hit the fan if we get a bad number in that one.
