Forex news and economic trading headlines 18 July 2016
News:
- BOE's Weale says early action on rates not needed
- More from Weale: BOE is exploring how low bank rate can go
- ECB's Lautenschläger sees risks in delayed Brexit conclusion
- Japan's Softbank confirms purchase of UK's Arm Holdings
- Softbank CEO says they did not use GBP weakness as an opportunity to acquire ARM cheaper
- It's the keenly awaited Merkel-May meeting in Berlin this week
- UK's May says she is not expecting a detailed Brexit discussion with Merkel or Hollande this week
- GBPJPY surges again as risk appetite returns
- Kerry says TTIP deal becomes more important because of Brexit
- Turkey's Simsek says markets will function in a "healthy way" today
- More from Simsek: No permanent damage expected for Turkish economy
- Turkey's Yildirim says they have evidence of plot against the government
- China to establish market-based industrial equity investment funds
- Bundesbank expects significant pick-up in German economy this quarter
- Fitch says post-election stimulus may raise fiscal risks in Japan
- RBI's Rajan says rupee devaluation will not necessarily help exports
- Turnbull says budget repair must be priority of new Australian government
- Option expiries 10 am NY cut today 18 July
Data: None of note
Stop me if you've heard this one before but the pound's had another rollercoaster session as changes in risk sentiment and comments from the BOE's Weale all combined to produce some decent volatility.
Early switch in risk sentiment to "On" after equity markets move higher saw GBPJPY trade up through 140 from 139.60 to post 140.37 and that sent core pairs higher with GBPUSD up to 1.3250 from 1.3220 and USDJPY to 105.85 from 105.35
Other core pairs got a lift from the yen selling but it was the pound that advanced the most accelerated by comments from BOE MPC member that he would not necessarily support a rate cut. GBPUSD pushed on to 1.3293 before running into a swathe of supply that I had previously highlighted in the order board and other posts.
Cue a move all the way back down to opening session lows as EURGBP also found demand into 0.8300 and rallying to 0.8354. EURUSD has once again been caught in the crossfire and mostly trading around 1.1050.
AUD,CHF,NZD,CAD have all similarly had their yen-related moves but nothing of real note leaving the pound to once again hog the limelight.
Confirmation of Japanese Softbank bid for UK's ARM Holdings at a 43% premium sent ARM shares to record highs underpinning the FTSE and others. Jury still out on £17bln cash impact and whether any of it still to be done.
