Forex trading news and economic data headlines 10 February 2017
News:
- IEA raises 2017 global oil demand growth forecast by 0.1m bpd to 1.4m bpd
- The Eurozone recovery cannot be sustained solely by monetary policy - ECB's Mersch
- Moody's says impasse between IMF and Eurozone is credit negative for Greece
- Eurozone lenders and IMF agree a common stance on Greece - Reuters
- Germany says they are focussed on success of bailout for Greece
- BOF's Villeroy says deflation threat has been avoided
- Yen demand returns and caps core pairs
- Can we really trade Trump for the long haul?
- UK data gives the pound some reasons to be cheerful
- Nikkei 225 closes up +2.49% at 19,378.93
Data:
- UK December visible trade balance GBP -10.89 bln vs -11.45bln exp
- December 2016 UK industrial production 1.1% vs 0.2% exp m/m
- France Q4 NFPs QQ flash +0.4% vs +0.3% exp
- France Dec industrial production mm -0.9% vs -0.7% exp
- Italy Dec industrial production mm +1.4% vs -0.1% exp
- Spain Dec house transactions yy +6.8% vs +17.3% prev
A session that's seen some money come of the table after yesterday's spike higher in JPY pairs.
Now it's all about a golf game/summit between two masters of spin and traders are rightly cautious as to what that might deliver, in rhetoric if not in earnest.
USDJPY failed into good offers/res between 113.80-00 that I had highlighted and that was a good enough signal for a retreat and yen demand that also capped core pairs.
USDJPY has traded down below 113.50, GBPUSD 1.2440 after failing to hold a post-UK data rally above 1.2500 with GBPJPY falling to 141.13. EURUSD has been a tad more resilient but anchored to session lows around 1.0635 for the most part with EURJPY down to 120.60 after failing at 121.34.
Similar but limited story on other core pairs which has seen AUDUSD underpinned but failing to rally past 0.7650 and USDCAD nudging higher from 1.3130 only to fail above 1.3150 as oil price rallied.
Equities started off in positive mood but they too saw some profit-taking while oil saw a spike helped by the release of the latest IEA report showing that 90% of OPEC output cuts have been effected in Jan. Gold has also posted a few gains albeit in steadier fashion.
US export/import price and Canadian jobs data to come as attention remains across the pond.
