Forex trading news and economic data headlines 22 February 2017
News:
- Discussing exiting QE would be premature says ECB's Vasiliaukus
- BOE's Cunliffe: Forcing euro clearing to Eurozone would make multi-currency central clearing impossible
- Japan's Aso says they will raise sales tax as planned in Oct 2019
- BOJ to consider adding specific dates when it announces JGB buying operations
- Lloyds Bank says UK government likely to fully exit its stake in May
- Germany's SDP keep in close touch with CDU in latest election poll
- Macron to beat Le Pen 59/41% in the second round in latest France election poll
- Yen demand still in vogue as USDJPY tests 113.00 again
- Pound falls again as UK GDP data detail disappoints
- Option expiries for the 10 am NY cut today 22 Feb
- Nikkei 225 closes down -0.01% at 19,379.87
Data:
- January 2017 Eurozone CPI final 1.8% vs 1.8% exp y/y
- Q4 2016 UK GDP 1st revision 0.7% vs 0.6% exp q/q
- Italy January HICP final yy +1.0% vs +0.7% exp
- Germany Feb IFO business climate 111.0 vs 109.6 exp
As global uncertainties continue and the USD tries to make its mind up we've seen a degree of risk-off sentiment with yen demand prevailing again.
Early failure by USDJPY to hold above 113.50 helped trigger falls in yen pairs along with GBP and EUR weakness to help along the way and we've seen the core pairs all fall.
USDJPY 112.96 lows and EURJPY is 118.60 has helped push EURUSD lower to 1.0494 before both ran into some temporary demand/respite.
GBPJPY also looking heavy again with early GBP demand based on EURGBP falling to test 0.8400 turning on its head as weaker UK Q4 GDP detail gave the pound a shunt lower. GBPUSD ran out of steam at 1.2500 and has fallen to 1.2425 so far.
AUDUSD has also been capped by AUDJPY supply after finding some EURAUD selling support earlier while USDCAD continues to look underpinned albeit running out steam ahead of decent offers/res between 1.3180-1.3200
Equities have held steady while oil has been in retreat again but gold is finding some safe-haven demand again and spent most of the session near early highs.
Attention turns back across the pond to some US and Canadian data and then the FOMC Minutes. Lots more action to come before the day is out.
