Forex news and economic data headlines for the European session 16 May 2016
News:
- Japan's Asakawa says G7/G20 have repeatedly debated how to deal with disorderly FX markets
- China's SAFE says pace of companies repaying foreign debt slowed in April
- China Jan-April non-financial outbound direct investment rises to $60.08bln
- PBOC adds 290bln yuan in MLF operation but rates unchanged
- Fitch say that Brexit would increase downside risks to EU sovereigns
- HSBC pushes back BOE rate hike forecast to May 2017
- GBPUSD falls to 3-week lows then runs into good demand
- AUDUSD back in retreat but dip-demand expected again
- Option expiries 10 am NY cut today 16 May
- More option expiries of note this week 17-20 May
- Nikkei 225 closes up +0.33% at 16,466.40
Data:
- Japan machine tool orders April flash -26.4% vs -21.2%
It's been a steady start to the week with a few European centres, including Frankfurt, out for the Whit Monday holiday.
Sometimes lack of liquidity can mean greater volatility but that's not been the case this morning but there's still been opportunity for those looking for it.
USDJPY shied away from 109.00 again early on as the Nikkei pared session gains into the close while AUDUSD found support below 0.7280 after the Chinese data-led falls to 0.7244. The former has seen good demand into 108.60 but still unable to crack 109.00 but AUDUSD has taken out decent sell interest around 0.7900 before running out of puff.
GBPUSD has failed to make any recovery beyond the offers/res building between 1.4375-85 and as European equities fell we've seen euro demand take EURGBP to look at 0.7900. That in turn drove GBPUSD lower to post 3-week lows of 1.4333 before running into the start of good demand coinciding with EURGBP capping at 0.7894
EURUSD has remained largely underpinned in a tight range around 1.1325 caught up in the cross-play crossfire while USDCAD has drifted lower from 1.2940 to test 1.2900 as oil made steady but unspectacular gains.
No data in Europe this morning but at 12.30 GMT we have NY Empire State Manufacturing Index (May) expected to come in around +6.5 vs 9.56 prev
