Forex trading news and economic data headlines for the European morning session 17 June 2016
News:
- The murder of Jo Cox casts a sad shadow over markets
- Socgen send clients a warning about Brexit liquidity
- Austria's Schelling says Brits are wise enough to stay in the EU
- Here's what will happen after the Brexit vote?
- Pound trying to make its mind up as we wait on US markets
- JGB investment "extremely difficult" say BOJ Market Group members
- The euro will continue to feature solidly in currency reserves says IMF's Lagarde
- Will ECB's Draghi deliver anything of note today?
- ESM approves EUR 7.5bln disbursement to Greece
- AUDJPY sellers noted as yen demand shoves pairs lower
- Option expiries 10 am NY cut today 17 June
- Nikkei 225 closes up +1.07% at 15,599.66
Data:
- Eurozone current account balance April SA EUR +36.2bln vs EUR +26.3bln prev
- Italy trade balance total April EUR+ 4.52bln vs EUR +5.232bln prev
- Q1 2016 Eurozone wages 1.8% vs 1.5% prior
- Final Q1 French wages data comes in as expected
The tragic murder yesterday of UK MP Jo Cox has cast its shadow over global markets and while the session has produced some decent opportunities the mood has been somewhat reflective.
After yesterday's sharp rally in the pound on the awful news we've seen some consolidation today after a failed test of 1.4300 on cable. The pair has since fallen back to 1.4232 only to bounce back to 1.4285 as EURGBP ran into solid offers/res above 0.7900 having survived a test below 0.7870 earlier.
Elsewhere EURUSD has spent a lot of time around 1.1250 caught up in the cross play crossfire, an area of the market I will explain in more detail on our forthcoming course. Sign up here
USDJPY had an early dip into 104.00 prompted by AUDJPY supply but has since failed to breach 104.50 and remains pinned down for the moment. AUDUSD fell to 0.7372 on that sell order but recovered some poise to test 0.7400 again only to run into fresh supply.
USDCAD has also been tightly range-bound between 1.2900-50 as oil continued to make some gains after yesterday's falls.
USDCHF and EURCHF have been on the back foot again amidst some safe-haven CHF demand despite the SNB's threat of further interest rate cuts if needed.
The US session brings housing data and Canadian inflation report at 12.30 GMT with a speech from Draghi potentially giving traders something to feed off.
