Forex news and economic trading headlines 12 July 2016
News:
- BOJ quarterly household sentiment survey shows lower expectations of inflation a year ahead
- Yen selling prevails on hopes of further economic stimulus
- Strong supply at 104.00 helps cap USDJPY
- Japan's Hamada says there were no detailed discussions with Bernanke on BOJ policy
- Japan's Suga says Abe and Bernanke did discuss BOJ measures
- Japan's Ishihara says it's not desirable to issue deficit bonds for stimulus
- Japan government cuts fiscal 2016 CPI estimate to +0.4% vs +1.2% projected in Jan
- Carney says BOE has worked to get rid of any credit supply concerns
- More from Carney: Very low bond yields do not give an accurate signal of future for UK economy
- BOE FPC Minutes: FPC ready to take any further actions deemed appropriate to support financial stability
- FPC's Sharp denies accusations that BOE had shown "startling dishonesty" in its pre-Brexit forecasts
- BOE FPC grilled over US decision not to prosecute HSBC
- China's cumulative 2016-20 ODI to reach USD 720bln
- RBA's Ellis doesn't expect much overall impact on Australian banks from sovereign downgrade
- Option expiries 10 am NY cut today 12 July
- Nikkei 225 closes up +2.49% at 16,095.65
Data:
- Germany CPI June final mm +0.1% as exp
- US NFIB small business optimism index June 94.5 vs 93.9 exp
- Japan tertiary industry index May mm -0.7% vs -0.7% exp
A busy session and the call definitely went out for a larger ice bucket for my typing fingers.
Focus still on the yen and the forthcoming (at some point but not tomorrow or the day after) Japanese economic stimulus. The pound though has also been under scrutiny via BOE gov Carney's latest grilling from UK lawmakers.
The yen selling led to a general risk-on sentiment that also saw oil prices rise and core ccy pairs all enjoy the ride again. USDJPY took out the 103.50 offers/res and marched on eventually to post 103.92 before being scared away by the strong offers/res at 104.00.
GBPJPY was once again a prime mover from the off taking out 135.00 to accelerate the rally and posting 137.03. GBPUSD suitably jumped up through 1.3100 to post 1.3186 before finally being a little deflated by Carney comments welcoming the impact of the weaker post-Brexit pound. EURGBP got hit through 0.8450 support to post 0.8420 before bouncing back into 0.8440
EURUSD felt the love too and posted 1.1126 before its own retreat back below 1.1100 while EURUSD held its own to climb back above 1.0900 with USDCHF finding support below 0.9800.AUD, CAD and NZD all enjoyed the yen pair-led rally.
Non-stop action from start to finish and that's not going to change any time soon.
