Forex trading news and economic data headlines for the European session 29June 2016
News:
- Suicide bomb attack at Istanbul airport leaves at least 36 dead, 140 injured
- Euro wobbles giving the pound a helping hand
- Here's what to look for when trading Brexit
- Fitch sees BOE lowering rates by 0.25% by year-end
- There will be no second Brexit referendum says Conservative leader candidate
- Labour Shadow Education Sec resigns after only 48 hours in the job
- Japan's Shibayama says they won't hesitate to respond to excessive FX speculation
- ECB's Constancio says fall in bank stock prices reflects lack of confidence
- Option expiries 10 am NY cut today 29June
- Nikkei 225 closes up +1.59% at 15,566.83
Data:
- UK Nationwide house price index June mm +0.2% vs 0.0% exp
- May 2016 UK mortgage approvals 67,042 vs 65,250 exp
- US MBA mortgage applications -2.6% vs 2.9% prior
- June 2016 Eurozone economic sentiment 104.4 vs 104.7 exp
- Saxony CPI June mm +0.1% vs +0.4% prev
- Brandenburg CPI June mm +0.1% vs +0.3% prev
- Baden-Wuerttemberg CPI June mm 0.0% vs +0.4% prev
- Spain CPI June flash mm +0.5% as prev
- Germany GFK consumer confidence July 10.1 vs 9.8 exp
- Japan small business confidence index June 46.5 vs 46.1 exp
After an early sell-off it's been a generally positive session for the post-Brexit pound but the euro has not been so happy.
As I type this though we're seeing some risk-on sentiment as N.American desks start to open up and that's lifting EURUSD back up to 1.1088 after holding 1.1050 but EURGBP is testing 0.8250 again giving GBPUSD a lift up to 1.3445
GBPUSD had started the session having dipped below in a rush as some early risk-on sentiment, partly attributed to the awful events in Istanbul, saw GBPJPY selling helping to push cable down 1.3287 before bouncing back just as quickly to 1.3320.
As European equity markets opened though with the FTSE leading the way it was full steam ahead for yen-pairs as risk sentiment returned and that gave core pairs support too. GBPUSD took out the 1.3400 resistance but failed into the next tranche at 1.3430 and we came back below 1.3400 as euro-negative sentiment on funding-ccy correlation prevailed. We saw EURUSD down to test 1.1050 and EURGBP down to 0.8250 before steadying only for the latter to fall again as I'm preparing this report.
USDJPY has found support below 102.20 and chewed its way back through 102.60 as yen selling dominates and that means AUDUSD, NZDUSD have also rallied while USDCAD has been mostly on the back foot.
Plenty of data to chew over and not really affecting price still but there's more to come including German CPI at 12.00 GMT.
Fragile trading conditions still but opportunities to be had.
