Forex trading news and economic data headlines 11 April 2017
News:
- G7 agree that Assad can not be part of Syria's future
- Tillerson says US cannot let the use of chemical weapons happen again
- Macron to beat Le Pen by 63/37 in second round run-off
- Russia to cut oil output by 250k bpd by mid-April
- Russia's Yudayeva sees inflation below 4% this year
- Italy's Padoan says economy on gradual recovery path
- Option expiries for the 10 am NY cut today 11 April
- Nikkei 225 closes down -0.27% at 18,747.87
Data:
- UK March CPI mm +0.4% vs +0.3% expected
- Eurozone February industrial production mm SA -0.3% vs +0.1% exp
- Germany ZEW April survey current situation 80.1 vs 77.5 exp
- US NFIB March small business optimism 104.7 as expected
- China March vehicle sales up +4.0% yy vs 22.4% prev
- China March auto sales up +1.6% yy
- Japan March machine tool orders flash 22.6% vs 9.1% prev
It all started quietly again but after USDJPY held the support around 110.50, EURJPY held 118.85 and equities pared a few opening losses we saw yen sellers prevail again.
The pound was quick to take advantage as GBPJPY led the way despite some less than hawkish UK inflation data which had initially left the pound far from impressed around 1.2415 and 0.8530. Stronger PPI data though showed that there is more inflation on the way and that helped find a bit of demand before retreating from 1.2450 and 0.8520 again.
EURUSD got caught up in the cross play crossfire and was stuck mostly around 1.0600 only then to have one spike higher to 1.0620. Stronger ZEW negated by weak EZ industrial production.
Gold and oil have also been steady and that's helped a little more risk-on sentiment prevail but USDJPY struggling to break back up through 110.75-80 where expiries and offers are providing some decent resistance so far adding to the USD-negative sentiment after Yellen's less than hawkish tones last night.
AUDUSD,USDCAD and NZDUSD have all traded tightly with the former also facing some option expiries nearby at 0.7520-30.
US JOLTS jobs data and Fed head Kashkari are the event highlights coming up and we can hope that further opportunities arise.
