Forex trading news and economic data headlines 5 April 2017
News:
- EU approves the resolution on Brexit negotiations
- UK's May intimates that free movement could continue after Brexit
- Ex-BOJ's Momma says it's hard to withdraw stimulus if inflation forecasts are cut
- Japan's Hamada says inflation target may not be so important anymore
- BOJ says Japan's Q4 2016 output gap rose to +0.17%
- Two weeks on and they're still moaning about Dijsselbloem's comments
- Tsipras says some of Greece's lenders have caused delays in bailout review
- Fitch says ECB's NPL guidance adds pressure on weaker Eurozone banks
- 1st round numbers unchanged in Opinionway French election poll
- Have we seen the last of the yen buying as USDJPY takes a look at 111.00?
- The quid loves the services data but it won't be enough to scare the shorts
- Option expiries for the 10 am NY cut today 5 April
- Nikkei 225 closes up +0.27% at 18,861.27.48
Data:
- March 2017 UK Markit/CIPS services PMI 55.0 vs 53.5 exp
- UK official reserves changes for March GBP +77mln vs -360mln prev
- UK new car registrations March yy +8.4% vs -0.3% prev
- Eurozone March Markit services PMI final 56.0 vs 56.5 exp
- US MBA mortgage applications -1.6% vs -0.8% prior
- Germany March Markit/BME services PMI final 55.6 as exp
- France March Markit services PMI final 57.5 vs 58.5 exp
- Italy March Markit/ADACI services PMI 52.9 vs 54.3 exp
- Spain Markit services PMI March 57.4 as expected
Yen selling and pound demand have been the main features of a session that hasn't broken any key levels but provided opportunity nonetheless.
GBPUSD had an early test of the 1.2420 support/recent lows but after failing to break down was soon back to 1.2445. Similarly GBPJPY fell to 137.45 only to bounce back too and EURGBP posted 0.8592 before retracing.
The GBP recovery continued after stronger than expected UK services PMI and we've been to 1.2490, 138.52 and 0.8542 before fresh sellers stepped in.
USDJPY holding 110.50 helped by comments from those close to govt and BOJ meant that yen sellers reappeared encouraged by the GBP demand and we've been up to 110.98 before offers/res pushed it back down to look at 110.80 again.
Oil has given up a few of its gains but USDCAD has held steady on CADJPY demand and with large option expiry at 1.3400 too.
USDCHF and EURCHF have both made some gains on the better risk sentiment but it's been a painfully slow process to get to 1.0043 from 1.0025 and 1.0710 from 1.0695.
AUD and NZD have both had the morning off by and large.
US data to come includes ADP and ISM with the FOMC Minutes laying in wait at 18.00 GMT to spring any potential surprises.
Ranging still but some intra-day pips to be had at least.
