Forex news and economic trading headlines 13 July 2016
News:
- Japan's Abe says he has ordered government to do all possible to reach nominal 3% GDP growth
- Japanese government cuts fiscal 2016 CPI estimate to +0.4% vs +1.2% projected in Jan
- Japan's Honda says BOJ should expand monetary stimulus this month
- Japan's Ishihara says helicopter money not discussed at Abe-Bernanke meeting
- EU's Tusk says impact of Brexit will be much smaller than some expect
- IEA says very high oil stocks present a threat to price stability
- PBOC says it offered 3,6 and 12 MLF today at unchanged rates
- Turnbull says Australian economy is strong and the outlook good
- Option expiries 10 am NY cut today 13 July
- Nikkei 225 closes up +0.84% at 16,231.43
Data:
- China trade balance for June, Surplus 311.2bn yuan
- China June trade balance USD +48.11bln vs USD +46.64bln exp
- Eurozone industrial output May mm SA -1.2% vs -0.8% exp
- France CPI June final mm +0.1% vs +0.2% exp
- Spain core CPI June mm 0.0% vs +0.3% prev
- Italy HICP June final yy -0.2% vs -0.3% exp
- Japan industrial production May final mm -2.6% vs -2.3% prev
A session offering a real selection box of variety and something for almost everyone, bulls and bears alike.
USDJPY began on the back foot as the Nikkei pared gains ( or vice versa as you prefer) but found support around 104.00 and this demand became a general USD+ sentiment.
USDJPY has chewed its way higher to 104.74 amidst a range of rhetoric from Japan on the expected stimulus but offering no further clues as to the extent of that package. Yen pairs found dip-demand too and that gave core pairs a lift back higher.
GBPUSD found itself on the back foot from the off and having dropped below 1.3300 as EURGBP found demand at 0.8300 we saw its wipe its feet at 1.3280 before then ultimately testing 1.3220. EURGBP rallied to 0.8350 as traders seemed happy to take some money off the table ahead of the BOE MPC decision tomorrow.
Despite the EURGBP demand we had EURUSD falling below 1.1050 before we saw yen-pair demand kick in to take us back above 1.1085 with GBPUSD playing catch up in rapid fashion to post to get above 1.3300 before failing again.
USDCHF enjoyed the early USD demand to test 0.9900 before giving up and that led to a retreat back below 0.9850 with EURCHF also giving up gains after failing to breach 1.0950.
AUD, NZD, and CAD have all seen similar troughs and peaks in what has been a topsy turvy but very tradable session with CAD traders thoughts now turning to the BOC rate decision at 14.00 GMT
