Forex news and economic data headlines for the European session 17 May 2016
News:
- BUBA's Weidmann says markets shouldn't speculate about more ECB measures
- German economy likely to slow in spring - Bundesbank
- Italy's 2016 GDP forecast lowered
- Cameron: Post Brexit deal on services would take a long time - Livesquawk
- Cable finds dip-demand after CPI-led retreat
- Non-performing loans at small firms is rising says China's CBRC
- USDJPY unconvincingly cracks the resistance nut at 109.50
- USDCAD rallies as oil price beats a retreat
- So you think you've had a tough 7 days?
- European fixed income preview 17 May 2016
- Option expiries 10 am NY cut today 17 May
- Nikkei 225 closes up +1.13% at 16,652.80
Data:
- April 2016 UK CPI 0.3% vs 0.5% exp y/y
- UK PPI input April mm NSA +0.9% vs +1.1% exp
- Eurozone March trade balance SA +€22.3bln vs +€22.0bln exp
- Japan industrial production March final mm +3.8% vs 3.6% prev
- Switzerland producer and import prices April +0.3% vs +0.1% exp
A busy morning has seen yen sellers prevail again while the pound has an up n down time of it after UK CPI data disappoints.
Firmer oil prices in Asia had seen yen sellers appear and the Nikkei rally as risk appetite increased. USDJPY moved back up through 109.00 as GBP demand saw GBPJPY take out offers/res at 158.00 to post 158.98 before funning into fresh supply.
USDJPY nudged its way ever higher before then taking out 108.50 offers/res in a rush and triggering stops 109.65. The pound meanwhile was having a few problems of its own after weaker UK inflation data sent GBPUSD back down to 1.4475 with a second wave move to 1.4457. EURGBP rallied to test 0.7830 only to run out of puff as the USD demand capped EURUSD at 1.1340. EURJPY too has run into fresh supply above 124.00.
USDCAD rallied from 1.2840 to 1.2927 as oil prices reversed with traders keen to take some money off the table while AUDUSD found itself in retreat from 0.7365 as the USD demand prevailed across the board. USDCHF and EURCHF have both been underpinned by the risk-on sentiment but rallies capped by sell interest at 0.9800 and 1.1100.
US CPI and housing data the next scheduled risk events at 12.30 GMT.
