Forex news and economic data headlines for the European session 20 May 2016
News:
G7:
- Japan's Aso says disorderly FX moves are harmful to economy
- EU's Dijsselbloem says Greek situation completely different versus a year ago
- G7 Summit: Aso says they did not discuss currency levels
- G7 Summit: US treasury sec Lew says Shanghai G20 meeting was very important regarding currency devaluation
Brexit:
- BOE's Forbes: There's no concrete evidence that Brexit concerns are causing soft UK data
- Pound dips again on latest Brexit poll results
- YouGov pollsters say "EU referendum bombshell data coming soon"
- ECB's Hansson says there is a need to continue with accommodative monetary policy
- ECB's Makuch says it's not necessary to consider further easing at this point
- Japan's Yamamoto says economy will not recover if sales-tax delay is just for show
- Adviser to Japanese PM repeats that sales-tax hike should be delayed
- IMF says maturity of European Greek loans must be extended to 2080
- EURCHF on a roll again to post highest level since February
- EURGBP demand pushes cable lower 20 May
- Option expiries 10 am NY cut today 20 May
Data:
- Eurozone current account March SA +€27.3bln vs +€19.2bln prev
- Germany PPI April mm +0.1% as expected
- UK CBI industrial trends - May orders -8 vs -11 prev
- Japan nationwide department store sales April yy -3.8% vs -2.9% prev
A scrappy end to the week so far with the pound having a little wobble and yen sellers prevailing again as equities take on a firmer tone.
GBPUSD had an early look above 1.4600 but general euro demand and a large EURGBP buy-order saw a dip to 1.4552 as the latter pair jumped to 0.7712 from 0.7685. EURUSD has been pinned down again between 1.1200-30 caught up in a bit of cross play crossfire.
EURJPY has remained underpinned as safe-haven demand diminishes on better equity showing and we've risen from 123.30 to take out 123.80 res/.offers before capping ahead of the next layer at 124.00. USDJPY has chewed its way higher from 110.10 to 110.45 but strong res/offers at 110.50 proving a step too far for the moment at least.
EURCHF has been a prime mover posting highs of 1.1128 not seen since Feb and with the SNB back in the frame as USDCHF remains underpinned.
USDCAD has rallied to 1.3133 as oil prices fall again and the large options rolling off at 1.2945 now unlikely to come into play.
AUDUSD and NZDUSD have found buyers on the crosses but the latter has a shadow cast by large option expires nearby today at 0.6750
