Forex trading news and economic data headlines 24 February 2017
- China refutes Trump's currency manipulation claims
- Germany's Dombret says Brexit is a two-way street for market access
- Dombret: Clean break from EU would end London's role as gateway to Europe
- HSBC raises UK GDP growth forecasts
- Enquiry opened to investigate Brexit campaign spending
- China ramping up oil imports
- USDJPY heads down through 112.50 as yen demand prevails again
- AUD underpinned with gold on a march higher still
- Nikkei 225 closes down -0.45% at 19,283.54
Data:
- UK BBA January mortgage approvals 44.7k vs 42k exp
- Italy February consumer confidence index 106.6 vs 108.8 exp
- Italy December industrial orders mm +2.8% vs +1.7% prev
A relatively steady session as the week-end approaches but one notable for yen and gold demand again as equities fall.
The session started with USDJPY on the back foot and with general USD supply elsewhere lifting GBPUSD to 1.2550, EURUSD 1.0604 and AUDUSD to 0.7710 among others but as equities started to extend losses so the yen demand helped cap core pairs.
EURJPY, GBPJPY and AUDJPY have been three notables under the cosh down to 118.90,140.71, and 86.28 with the FTSE 100 down -0.7%, DAX -1.5% and CAC40 -1.31% as I type.
AUDUSD got an early lift from gold posting 3 1/2 month highs of $1255 but has since fallen back to 0.7680 as the shiny stuff runs out of polish and AUDJPY falls outstrip others.
USDCHF has fallen to 1.0040 but still finding some support with EURCHF steady around 1.0650 while USDCAD has found support into 1,3080 again as CADJPY supply prevails and oil retreats from highs.
USD supply though is rearing its head again as NA desks start to fire up and that's lifted EURUSD back to 1.0611, and GBPUSD to 1.2554 the latter though finding gains capped by EURGBP month-end related demand albeit finding sellers of its own above 0.8450.
Canadian CPI at 13.30 and US Michigan sentiment/US new home sales at 15.00 GMT the data risks to come and we can expect some further action before the week is out.
