Forex news and economic data headlines for the European session 12 May 2016
News:
- Bank of England MPC votes 9-0 to keep rates unchanged
- BOE Inflation Report: Q2 growth forecast cut to +0.3% vs +0.5 % prev
- BOE MPC Minutes: Continued weakness in pay growth noted
- Here's the key BOE comment that should keep the pound supported over the presser
- Carney: Growth is decelerating again
- Uncertainty is influencing the slowdown in growth says Carney
- More from Carney: There are limits to what monetary policy can deliver after Brexit
- We have a range of unconventional measures says Carney
- Brexit has been the biggest discussion among other central banks
- Japan's Ito says BOJ likely to ease in June or July
- France's Sapin says Brexit would be a shock for EU economies
- IEA expects 2016 global oil demand growth to reach 1.2mln bpd vs 1.16mln prev
- Economists say ECB could cut rate to -0.5% before it becomes counterproductive- Reuters poll
- Moody's says Western Australia's worsening budget forecasts are credit negative
- Option expiries 10 am NY cut today 12 May
Data:
- Nikkei 225 closes up +0.41% at 16646.34
- March 2016 Eurozone industrial production -0.8% vs 0.0% exp m/m
- Germany wholesale price index April mm +0.3% as prev
- Japan economy-watchers survey April current 43.5 vs 44.00 exp
- Japanese bankruptcies April yy -7.08% vs -13.15% prev
It was all about the BOE today but in the event it's been a bit of a damp squib as Carney & Co succeed in broadly maintaining a neutral stance as I suggested they would in my preview.
The pound had started off on the back foot and we had earlier tests of 1.4400 and 0.7920 on GBPUSD and EURGBP but traders were equally keen to trim positions ahead of the BOE and the 9-0 vote gave bulls the relief rally they needed to 1.4497 and 0.7858. Since then though there's been little of hawkish note and we've returned to 1.4440 and 0.7885.
Large option expiries have cast a shadow over EURUSD which spent nearly all the session trawling around 1.1415 before N American desks came in hovered up some USD to send it down to 1.1379 and USDJPY up to 109.39 having capped previously at 109.00.
USDCAD though has fallen on firmer oil price but has found support below 1.2800 while AUDUSD and NZDUSD have both been on the back but found demand into 0.7300 and 0.6800 as yen selling gives support to core pairs.
Nothing of real note data wise today so we'll be looking for other scraps from the table to fuel any further moves of note.
