Forex news and economic data headlines for the European session 13 May 2016
News:
- BOJ's Kuroda says interest rates would naturally rise as inflation heads towards 2%
- More from Kuroda: BOJ policy is aimed at domestic purposes
- Germany's Gabriel says Q1 GDP data is good news
- German Q2 GDP is likely to slow down
- BOE's Carney under fire for mentioning the R word
- IMF utters forth on Brexit
- IMF to drop the bomb on Brexit before the vote says Lagarde
- European institutions agree on Greek accord - Livesquawk
- Italian government debt rises to record €2.229trln in March
- China to post a current account surplus in 2016
- Russia's Novak says they are unlikely to take part in the 2 June OPEC meeting
- OPEC leaves world oil demand growth forecast unchanged at 1.2mbpd
- Shorts win out as EURUSD is driven to the next band of support
- European Fixed Income morning preview 13 May 2016
- Option expiries 10 am NY cut today 13 May
- More option expiries of note next week
- Nikkei 225 closes down -1.41% at 16,412.21
Data:
- Q1 2016 Eurozone GDP 0.5% vs 0.6% exp q/q
- Germany Q1 GDP flash qq +0.7% vs +0.6% exp
- Germany CPI April final mm -0.4% vs -0.4% exp
- March 2016 UK construction output -3.6% vs -2.5% exp m/m
- Italy HICP April final yy -0.4% vs -0.3% exp
- Italy Q1 GDP qq WDA flash +0.3% vs +0.3% exp
- China M2 money supply April yy +12.8% vs 13.5% exp
- Spain core CPI April mm +0.8% vs +0.6% exp
- Japan tertiary industry index March mm -0.7% vs -0.1% exp
No scary monsters or nasty surprises in a subdued session as we wait on a raft of US data later today.
USDJPY drifted around 108.75 as the Nikkei posted some losses into the close and it wasn't long the at yen and general USD demand sent yen pairs and core pairs to session lows. EURUSD tested support at 1.1330 from 1.1370 but demand down there coupled with EURJPY and USD bids ( 123.00 and 108.50) saw the pair rally back above 1.1350 but struggling to progress any further since.
GBPUSD fell early on from 1.4440 to break down through 1.4400 triggering a few stops to post 1.4380 before also recovering some poise as yen sellers returned and we've back up to 1.4421.
Falling oil prices saw USDCAD rally from 1.2845 to 1.2882 before running out of puff as oil found a base while USDCHF has been shadowing EURUSD again but generally on the back foot as EURCHF continues to find a few sellers.
AUDUSD remained on the back foot and took out reported demand into 0.7280 before trying to get back above 0.7300 only to run into fresh supply while NZDUSD has also been pinned down in a 0.6790-0.6910 for the most part.
Focus remains on US data that starts with retail sales and PPI at 12.30 GMT and we should see a livelier session before the week draws to a close.
