Forex news and economic data headlines for the European session 18 May 2016
News:
- Japan's Abe says he explained to G7 the need for policies to stimulate demand
- We must not allow a return to deflation, however unlikely says Abe
- Latest Brexit poll has Remain camp leading with 44%
- Latest IPOS Mori Brexit poll sees Remain leading with 55%
- ECB could act if needed after Brexit vote says Villeroy
- France is returning to more sustainable growth says ECB's Villeroy
- ECB's Vasiliauskas: ECB is in wait and see mode - MNI
- ECB's Vasiliauskas: We should not discuss new measures before Autumn
- Buba's Weidman says many countries don't have the urgent need for expansive fiscal policy
- Russia's Yudayeva says central bank can carry out interventions without prior warning
- Pound reverses post-data gains as rally sellers prevail
- USDCAD caps as oil prices turn higher again
- Large AUDUSD option casts a shadow over price action
- Option expiries 10 am NY cut today 18 May
- More option expiries of note this week 19-20 May
- Nikkei 225 closes down -0.05% at 16,644.69
Data:
- April 2016 Eurozone HICP final -0.2% vs -0.2% exp y/y
- April 2016 UK labour market claimant count -2.4k vs 4.3k exp
Another busy morning that has seen the pound up n down n up on data and Brexit polls but other core pairs with more than one eye on tonight's FOMC Minutes.
GBPUSD began the day steady enough around 1.4435 unaffected by one Brexit poll that had a 44/40 split as EURGBP trawled around 0.7815 but we saw a quick test of 1.4450 on better headline jobs/wages data . Sellers were quick to jump in though and we saw a move down to 1.4404 as traders bought a few USD generally and digested the less than convincing wages ex-bonus back story.
Demand at 1.4400 though was enough to hold the dip along with EURGBP offers at 0.7830 and we wandered back to 1.4425 before the recent release of another Brexit poll showing an 18 point lead for the Remain campaign. 1.4450, 1.4470 and 1.4500 offers/res all now history and we're testing 1.4530 again as I type in rapid fashion.
USDJPY capped above 109.50 again but has largely been caught up in cross play crossfire while EURUSD found support into 1.1250 to rally into 1.1290 but offers/res waiting at 1.1300.
USDCHF and EURCHF remain underpinned but capped by the latter's res/supply around 1.1100
USDCAD has been following oil which fell to start with before staging a recovery, a move which has seen the pair test 1.2980 before retreating to 1.2955.
AUDUSD has an early look at 0.7250-60 support/corp demand but has been capped by large option expiry interest at 0.7300.
So it's all about the pound again price wise but attention will switch to FOMC Minutes at 18.00 GMT.
