Forex news and economic data headlines for the European session 9 May 2016
News:
- Brexit to set the European dominos falling
- Germany's Gabriel says Greece must be helped with debt burden
- Germany's opposition to Greek debt cut hasn't changed
- Constancio: Brexit could lead to downward EMU economic revisions
- ECB has been successful in containing second round effects says Constancio
- ECB's Constancio: Other actors need to play their part
- Fed's Evans: Us economic fundamentals are good
- IMF sees "moderate" 2016 German growth but strong domestic demand
- BOE's Bailey says regulators shouldn't try to determine culture
- Options expiries 10 am NY cut today 9 May
- Nikkei 225 closes up +0.68% at 16,216.03
Data:
- Germany factory orders March mm +1.9% vs +0.6% exp
- UK Halifax house price index April mm -0.8% vs -0.3% exp
- Switzerland CPI April mm +0.3% vs +0.1% exp
- May 2016 Eurozone Sentix index 6.2 vs 6.1 exp
- Japan consumer confidence index April 40.8 vs 40.7 exp
A lively session to open up the week and we've seen yen weakness and the pound on another rollercoaster ride from the off.
USDJPY had found buyers around 107.45 as the Nikkei pared losses into the close and that USD demand set the early tone in other pairs with EURUSD nudging down to 1.1380, AUDUSD 0.7334 and USDCHF up through 0.9720.
It was GBPUSD though that caught the eye after week-end talk of the BOE contemplating rate cuts if UK leaves the EU and looking to lower its inflation forecasts on Thursday, and soon after London opening we saw a rapid fall from 1.4420 to 1.4375 before running into some steady demand.
With equity markets making gains the risk-on sentiment saw USDJPY edge to 108.0 and yen pairs head higher. GBPJPY led the way sending GBPUSD all the way back up through Asian highs to post 1.4480 before running into sellers again and retreating below 1.4450.
EURUSD had also caught a bid as EURJPY marched higher but was unable to hold above 1.1400 and fell back toward session lows again. AUDUSD was on the back foot from the off but found good demand waiting at 0.7335 and that's held so far although the rallies look less than convincing.
USDCAD has found itself a few offers as oil prices remain underpinned although failing to make advances on the highs late in NY on Friday.
Lots of focus on Greece today as the Eurogroup meet to discuss re-profiling debt servicing.
Not a lot of data to come but that's not going to stop this day taking a few more turns.
